Inventors Often Obtain Patents on New Products and Processes,thereby Turning

question 90

Multiple Choice

Inventors often obtain patents on new products and processes,thereby turning new ideas into

• A)private goods and increasing the incentive to engage in research.
• B)private goods but decreasing the incentive to engage in research.
• C)public goods and increasing the incentive to engage in research.
• D)public goods but decreasing the incentive to engage in research.

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Definitions:

Production Function

An equation or graph showing how output changes with variations in input factors, holding all else constant.

Decreasing Marginal

In economics, a situation where each additional unit of input results in a smaller increase in output compared to previous units.

Increasing Returns

A situation in production where an increase in the amount of inputs results in a disproportionately larger increase in output.

Production Isoquant

A curve that represents all combinations of inputs that produce the same level of output, used in the analysis of production technology.