Which of the Following Is True of Trademarks

question 263

Multiple Choice

Which of the following is true of trademarks?

• A)A successful trademark is one that becomes a generic name for a product, for example, "Xerox" has become a generic term for making photocopies.
• B)A successful trademark is one that allows consumers to immediately identify the source or producer of the product.
• C)If a firm is granted a trademark, then no other firms can legally produce similar products for a given period of time.
• D)If a firm is granted a trademark, then no other firms can legally sell in the same geographic area for a given period of time.

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Definitions:

Positive Economic Profits

Positive economic profits occur when a firm's total revenues exceed its total costs, inclusive of both explicit and implicit costs.

Monopolist

An entity that is the sole provider of a particular product or service in the market, possessing the power to significantly influence prices and supply.

Maximum Profit

The highest possible financial gain a firm can achieve when all factors of production are optimized.

Memory Company

A business specializing in the production of memory storage devices, such as RAM and flash memory.