Patents

question 87

Multiple Choice

Patents

• A) are granted only to competitive firms and not monopolies.
• B) require that monopolies increase the amount they produce.
• C) increase the incentive to capture economies of scale.
• D) increase the incentive to innovate.
• E) grant the holder a monopoly that lasts forever.

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Definitions:

Cost Behavior Analysis

The study of how specific costs change in relation to changes in an organization's activity level.

Business Activity

Any actions undertaken by a company as part of its operations, including production, sales, marketing, and administration.

Unit Costs

Unit Costs refer to the total expenditure incurred to produce, store, and sell one unit of a product, including all variable and fixed costs.

Variable

An element, feature, or factor that is liable to vary or change; in science and mathematics, a quantity that can assume any of a set of values.