A Patent

question 4

Multiple Choice

A patent

• A)always gives rise to a monopoly.
• B)may not provide a barrier to entry.
• C)allows the patent owner to capture all of the consumer surplus.
• D)increases total welfare.

---

Definitions:

Activity Rates

Rates used in Activity-Based Costing to assign overhead costs to products or services, based on specific activities that drive those costs.

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.

Product I9

A reference to a specific product identified by the code I9, indicating a unique item or model in a company's product line.

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.