What Is Meant by the Term Inappropriability

question 14

Multiple Choice

What is meant by the term inappropriability?

• A)The perfect competition model is not a realistic model of a modern economy.
• B)In reality, firms do not maximize profits by setting marginal cost to marginal revenue.
• C)The inability of firms to capture the full monetary value of their inventions.
• D)The natural inefficiencies inherent in government intervention.
• E)None of the above.

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Definitions:

Marginal Benefits

The additional satisfaction or value that one receives from consuming or producing one more unit of a good or service.

Production Possibilities

A curve or frontier that shows various combinations of the amounts of two goods or services that can be produced within the limits of available resources and technology.

Specialization

The process or strategy of focusing on a narrow area of expertise or production to gain efficiency or quality in the output.

Production Possibilities Curve

A graphical representation of the maximum goods and services that a society can produce, given its productive resources and technology.