Patents

question 68

Multiple Choice

Patents

• A) will create a profit incentive to do research.
• B) might be welfare reducing if granted for too long a period.
• C) serve as a barrier to entry.
• D) All of the above.

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Definitions:

Original Cost

The initial purchase price or investment made in acquiring an asset, including any related acquisition costs.

Leasehold

An interest in land or property which is held on a lease.

Lessor

A person or entity that rents out property or equipment to another party, known as the lessee, under the terms of a lease agreement.

Lessee

A person or entity that leases or rents property or equipment from another, known as the lessor.