A Justification for Patents Is That Without Patents Consumer Surplus

question 60

Multiple Choice

A justification for patents is that without patents consumer surplus would be

• A) larger than with the patent.
• B) zero since the product would not be invented.
• C) only slightly smaller than with the patent.
• D) zero since the monopoly would be a revenue maximizer.

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Definitions:

Marketing Channel

A systems of intermediaries that helps to deliver a product from the producer to the consumer.

Logistics

The comprehensive coordination of complex operations involved in the movement, storage, and processing of goods and materials from origin to consumption.

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies, in the movement of products or materials.

Integrated Supply Chain

An integrated supply chain is a cohesive system where every stage, from supplier to customer, is effectively coordinated and managed to optimize efficiency and reduce costs.