One of the Effects of Patents Is to

question 203

Multiple Choice

One of the effects of patents is to

• A) reduce incentives for innovation.
• B) give firms incentives to worry less about minimizing production costs.
• C) temporarily provide the patent owner with monopoly power.
• D) reduce the degree of monopoly power in the short run.

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Definitions:

Numerator

The top number in a fraction that represents the part of the whole that is being considered.

Denominator

The bottom number in a fraction that shows how many equal parts the item or group is divided into.

Categorical Variable

A variable with categorical data.

Dummy Variables

Variables used in regression analysis to represent categorical data by converting it into a series of binary values.