What Happens When Intellectual Property Rights Expire

question 44

Multiple Choice

What happens when intellectual property rights expire?

• A)The intellectual property is said to enter 'the public domain' and become freely available.
• B)The intellectual property rights are transferred to the state.
• C)The intellectual property enters the public domain but cannot be copied or reproduced without the express approval of the previous owner of the IP rights.
• D)The intellectual property becomes the private property of the owner and cannot be reproduced by anyone.

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Definitions:

Caitlin's Producer Surplus

The difference between what a producer (in this case, Caitlin) actually receives for selling a good and the minimum they would be willing to accept.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, measured by the area above the supply curve and below the market price.

Whitewater Rafting

A recreational outdoor activity which uses an inflatable raft to navigate through rough or whitewater rivers.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from selling it at the market price.