Patents Stimulate Technological Advance by

question 112

Multiple Choice

Patents stimulate technological advance by

• A) making capital more productive.
• B) enabling the government to determine which potential technological advances firms should pursue.
• C) providing information about the status of technical knowledge in the economy.
• D) allowing inventors to capture the economic rewards of their inventions.

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Definitions:

Market Demand

The total quantity of a particular good or service that all consumers in a market are willing and able to purchase at various prices.

Competitive Industry

An industry environment where numerous competitors offer similar products or services, resulting in the need for businesses to vie for market share and customer attention.

Homogenous Product

Goods that are identical in quality and cannot be distinguished from one another by consumers.

Barriers To Entry

Obstacles that prevent new competitors from easily entering an industry or area of business, such as high start-up costs or complex regulations.