Critics Argue That Large Marketing Companies Use Patents and Heavy

question 88

Multiple Choice

Critics argue that large marketing companies use patents and heavy promotion spending to ________.

• A) acquire smaller companies
• B) bear the social costs of their operations
• C) bar new companies from entering an industry
• D) achieve economies of scale
• E) offset cultural pollution

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Definitions:

Fixed Cost

A financial outlay that is unaffected by variations in the production or sales levels of goods and services.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Total Cost

The complete cost of producing a specific quantity of output, including both fixed and variable costs.

Output

The total amount of goods or services produced by a company, industry, or economy within a certain period.