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.

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Definitions:

Phosphate

A chemical compound that is vital for plant growth and is used extensively in fertilizers.

Nitrates

Inorganic compounds made of nitrogen and oxygen, NO3−, that are often used as fertilizers but can contribute to water pollution if overused.

Dissolved Oxygen

The amount of oxygen that is present in water, important for the survival of aquatic life and the health of water ecosystems.

Coastal Wetlands

Ecologically rich areas located at the interface between land and sea, known for buffering coastal storms and providing habitat for numerous species.