The U.S. Patent System

question 311

Multiple Choice

The U.S. patent system

• A)makes general knowledge excludable.
• B)makes specific, technical knowledge excludable.
• C)creates a disincentive to invent.
• D)Both a and b are correct.

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Definitions:

Price Signalling

A mechanism where the price of a good or service provides information to buyers and sellers which influences their decisions.

Cartels

An association of independent firms or countries that agree to coordinate their production and pricing decisions to monopolize a market and maximize collective profits.

Collusive Agreement

A secret or illegal cooperation or conspiracy, especially between competitors, aimed at deceiving or gaining an unfair advantage in the market.

Dominant Firm

A company that has a major share of the market for a particular product or service, often able to influence market conditions.