Which of the Following Is True of a Patent?​

question 35

Multiple Choice

Which of the following is true of a patent?​

• A)It reduces a firm's incentive to develop new products.
• B)It is issued in recognition of new works of art or literature.
• C)It gives a firm a permanent exclusive right to produce a new good.
• D)It gives a firm a temporary exclusive right to produce a new good.
• E)It guarantees economic profits to a firm in the long run.

Grasp the fundamentals and applications of cost-volume-profit (CVP) analysis.

Identify and explain the concepts of fixed, variable, and mixed costs in relation to production levels.

Understand the methods and importance of cost behavior analysis for managerial decision-making.

Comprehend the relevant range concept and its significance in cost accounting.

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Definitions:

Marginal Productivity

The additional output derived from the use of one more unit of a factor of production, holding all other factors constant.

Productive Farmland

Land that is capable of producing a high yield of crops due to its fertility, favorable climate, or efficient management.

Diminishing Returns

The principle that as an increasing amount of one factor of production is employed, holding all other factors constant, the additional output generated will eventually decrease.

Marginal Productivity

Marginal productivity refers to the extra output, income, or benefit derived from using an additional unit of a variable factor of production, holding all other inputs constant.