In the Desire to Have a Celebrity's Image Protected to Prevent

question 65

Multiple Choice

In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve,a celebrity's estate

• A)will probably not be successful,since there are no laws regulating this kind of use in the United States.
• B)will have to be granted a patent declaring the celebrity's image a new product,and this will give the estate protection for 7 years.
• C)can rely on U.S.laws that protect intellectual property rights to prevent the unauthorized use of his image.
• D)will most likely be more successful in developing countries than in high-income countries,since property regulations are better enforced in developing countries.

Understand the role of legislation in guiding commercial activities including pricing.

Comprehend the distinctions and applications of various pricing strategies such as skimming, penetration, and predatory pricing.

Understand how contribution margin analysis and cost allocation affect pricing and production decisions.

Understand the basic concept of linear programming and the significance of the feasible solution area.

---

Definitions:

X-Inefficiency

Refers to the situation where a firm is not maximizing its potential output due to managerial or organizational inefficiencies, leading to higher production costs than necessary.

Allocative Efficiency

A state of resource utilization where the distribution of goods and services is optimized to meet consumer preferences and maximize overall welfare.

Productive Efficiency

The scenario in which a good or service is produced at the lowest possible cost, utilizing resources and technologies in the most efficient manner.

Long-Run Equilibrium

A state in which all firms in an industry achieve zero economic profit, resulting in market stability over time.