A Patent on a Product Gives a Firm

question 124

Multiple Choice

A patent on a product gives a firm

• A) protection from having the invention copied or stolen for a period of 20 years.
• B) economies of scale in producing the product.
• C) excessive profits in the long run.
• D) the power to impose a tariff on a competing product.

Distinguish between movements along the demand or supply curve versus shifts in these curves.

Explain the economic reasoning for specific market actions, such as pricing strategies or responses to market changes.

Understand the definition and characteristics of inferior goods.

Identify examples of complementary goods.

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Definitions:

Archie B. Carroll

A prominent academic known for his work on corporate social responsibility and the pyramid of CSR, emphasizing the responsibilities businesses have towards society.

Invisible Hand

A term coined by Adam Smith to describe the unseen forces that move the free market economy through the self-regulating nature of the marketplace.

Whistle-Blower

An individual who exposes illegal or unethical activities within a public or private organization.

Pfizer

A multinational pharmaceutical corporation known for developing a wide range of medicines and vaccines, including treatments for COVID-19.