Cat in the Hat Pty Ltd Owns the IP Rights

question 54

Multiple Choice

Cat In The Hat Pty Ltd owns the IP rights in 'widgets'.Which of the following is the best description of the restrictions it is permitted to impose in a license granted to Sam to produce widgets?

• A)Where Sam can produce the widgets.
• B)The period in which the widgets can be produced by Sam.
• C)The number of units of widgets that Sam can produce.
• D)Where, when, how and what volume of widgets Sam may produce.

---

Definitions:

Wage Rate

The amount of compensation offered to an employee per unit of time (e.g., hourly, daily) or piece of work done.

Purely Competitive

Purely competitive markets are characterized by many buyers and sellers, homogeneous products, and the absence of barriers to entry or exit, leading to firms being price takers.

Imperfectly Competitive

Refers to market structures that do not meet the conditions of perfect competition, often characterized by a small number of sellers, product differentiation, or barriers to entry.

Marginal Revenue Product

The additional revenue generated from employing an additional unit of a resource or factor of production.