Suppose a Patent Is Granted for a Product That Has

question 10

Multiple Choice

Suppose a patent is granted for a product that has the linear demand curve P = a - b Q.The constant marginal cost of producing this product is $50 per unit,a unit sells for $150,and consumers purchase 100 units of the good at that price.If the monopoly is maximizing profit,b equals

• A) 1.
• B) 1.5.
• C) 2.
• D) 2.5.

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Definitions:

State Collective Bargaining Laws

Legislation at the state level that governs collective bargaining rights and processes for public and private sector employees.

Strikes

A work stoppage caused by the mass refusal of employees to work, typically aiming to enforce demands regarding employment conditions.

Property Rights

The legal rights to use, control, and dispose of property, whether personal or real estate.

Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases involving issues of federal law, and holds the power of judicial review.