A Firm Is Concerned About the Possibility of Patent Infringement

question 12

Multiple Choice

A firm is concerned about the possibility of patent infringement and has hired an attorney to review patents. If the attorney is reviewing 100 patents and the marginal cost of reviewing the 100th patent is $30 and the expected marginal benefit of reviewing the 100th patent is $25, which of the following is true?

• A)The firm's total cost of infringement will decrease if the number of patents reviewed decreases.
• B)The firm's total cost of infringement will increase if the number of patents reviewed decreases.
• C)The firm is minimizing the total cost of infringement.
• D)The firm's total cost of infringement will decrease if the number of patents reviewed increases.

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Definitions:

Hydrogen

A colorless, odorless, and highly flammable gas that is the most abundant element in the universe, commonly used in fuel cells and as a clean energy source.

Cold Cranking Amp

A measure of a battery's ability to start an engine in cold temperatures, specifically the number of amps a battery can support for 30 seconds at 0°F.

Volts

The unit of electric potential difference or electromotive force, measuring the energy per unit charge that drives current flow.

Degrees Fahrenheit

A scale of temperature on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.