When the Government Wants to Give an Exclusive Right to One

question 257

Multiple Choice

When the government wants to give an exclusive right to one firm to produce a product, it

• A)imposes a tariff on imports of the product.
• B)imposes a quota on imports of the product.
• C)grants a patent or copyright to an individual or firm.
• D)uses antitrust laws to keep other firms from entering the market.

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Definitions:

Quantity Demanded

The amount of a good that buyers are willing and able to purchase at a specific price.

Purchase

The action of buying goods or services.

Price

The financial sum expected, needed, or handed over in exchange for an item.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period of time.