Since Patent Laws Create Monopoly Power in the Short Run

question 131

Multiple Choice

Since patent laws create monopoly power in the short run and thus provide a strong incentive for firms to undertake the risk and effort involved in the development of a technological improvement, we can expect that patent laws

• A) are inefficient.
• B) are damaging to consumer welfare in the long run.
• C) reflect the power of special interests and the impact that they exert on the regulatory policy.
• D) may lead to improved products at a lower cost in the long run.

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Definitions:

Systematic Judgments

Evaluations or decisions made following a methodical and consistent approach, often based on established criteria or evidence.

External Attribution

The process of ascribing the cause of one's own or another's behavior to external factors or the environment.

Internal Attribution

The process of attributing the cause of one's behavior to personal factors, such as character or effort, rather than to external circumstances.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.