Licensing Can Be a Way to Start a New Venture

question 43

True/False

Licensing can be a way to start a new venture when the idea may infringe on someone else's patent,trademark,or copyright. 

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust fully to market changes.

Long-run Equilibrium

The condition in which, considering full adjustments in the market, the quantity supplied equals the quantity demanded at the prevailing market price.

Perfectly Competitive

A market structure characterized by many small firms, identical products, free entry and exit, and full information, leading to firms being price takers.

Marginal Cost

The additional cost incurred from making one more unit of a good or service.