A Monopoly Has Produced a Product with a Patent for the Last

question 113

Multiple Choice

A monopoly has produced a product with a patent for the last few years.The patent is going to expire.What will happen after the patent expires?

• A) The incumbent will leave the market.
• B) The incumbent will retain its status as a monopoly but produce at a lower price.
• C) Some firms will enter the industry.
• D) None of the preceding answers is correct.

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Definitions:

Per-worker Production Function

An economic model representing the relationship between the amount of a single input, usually labor, and the amount of output produced per worker.

Political Environment

The set of legal, governmental, and social conditions that affect the operation of businesses and individuals.

Terror Attack

A violent act intended to create fear, perpetrated for a religious, political, or ideological goal.

Per-worker Production Function

A mathematical representation that shows how the amount of output per worker in an economy is affected by the level of capital per worker.