Which of the Following Statements Is True of Patents

question 48

Multiple Choice

Which of the following statements is true of patents?

• A)Patents should be granted for such inventions which cannot be immediately imitated.
• B)The cost of granting patents to private firms is more than the benefit,if the goods produced by them are characterized by nonexclusion.
• C)In the absence of patents the amount of new knowledge produced will not be socially optimal.
• D)A patent grants permanent monopoly power to an inventor.

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Definitions:

Limited Supply

A situation where the availability of a product or resource is less than the demand for it, often leading to increased prices.

Pricing

The process of determining the monetary value at which a product or service will be sold.

Spot Market

A public financial market in which financial instruments or commodities are traded for immediate delivery.

Marginal Revenue

The additional income received from selling one more unit of a good or service.