Patents Stimulate Technological Advance by

question 112

Multiple Choice

Patents stimulate technological advance by

• A) making capital more productive.
• B) enabling the government to determine which potential technological advances firms should pursue.
• C) providing information about the status of technical knowledge in the economy.
• D) allowing inventors to capture the economic rewards of their inventions.

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Definitions:

Least-Squares Regression

An analytical technique that identifies the most suitable line by minimizing the sum of the squares of the gaps between the observed and estimated values.

Variable Cost

A cost that changes in proportion to the level of activity or volume of goods produced.

Fixed Cost

Expenses that do not change with the level of production or sales activities within a certain range, such as rent or salaries.

High-Low Method

A method applied in managerial accounting that calculates fixed and variable expenses by assessing the maximum and minimum activity levels.