A Firm Is Concerned About the Possibility of Patent Infringement

question 7

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 $50 and the expected marginal benefit of reviewing the 100th patent is $50, which of the following is true?

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