A Justification for Patents Is That Without Patents Consumer Surplus

question 60

Multiple Choice

A justification for patents is that without patents consumer surplus would be

• A) larger than with the patent.
• B) zero since the product would not be invented.
• C) only slightly smaller than with the patent.
• D) zero since the monopoly would be a revenue maximizer.

---

Definitions:

Law Of Small Numbers

A cognitive bias where people infer broader conclusions from a small set of observations than is statistically warranted.

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind, leading to partial judgment or prejudice.

SDO Individuals

Individuals high in Social Dominance Orientation, a personality trait characterized by a preference for inequality among social groups.

Relative Gain

The concept in international relations that states measure their gains in comparison to those of other states.