Suppose a Market Is Initially Competitive with Many Firms Selling

question 5

Multiple Choice

Suppose a market is initially competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect

• A) an increase in market output and an increase in the price of the product.
• B) an increase in market output and an decrease in the price of the product.
• C) a decrease in market output and an increase in the price of the product.
• D) a decrease in market output and a decrease in the price of the product.

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Definitions:

First-To-Invent Rule

A patent law principle stating that the right to a patent for an invention goes to the first person to invent it, not necessarily the first to file a patent application.

Copyright

A form of intellectual property protection granted by law to the creators of original works of authorship, including literary, dramatic, musical, and certain other intellectual works.

Life of the Creator

A legal term often associated with copyright laws, referring to the duration in which copyright protection lasts based on the creator's lifetime plus a number of years posthumously.

First-to-File Policy

A legal principle where the first party to file a patent application for an invention is granted the patent, regardless of who was the first to invent.