The Longer a Patent Lasts

question 82

Multiple Choice

The longer a patent lasts,

• A) the greater the potential economic profits available to an innovator.
• B) the lower the deadweight loss.
• C) the lower the average costs of production.
• D) the less innovation there will be.

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Definitions:

Decreasing Rate

A situation in which the rate or speed of some process or action diminishes over time.

Payoffs

The outcomes or returns from a particular action or investment, often used in the context of game theory or decision-making.

Expected Values

A statistical concept that calculates the average outcome when an action is repeated many times.

Disability Insurance

A type of insurance that provides income in the event a worker is unable to perform their work and earn money due to a disability.