Patents and Copyrights Can

question 33

Multiple Choice

Patents and copyrights can:

• A) create strong incentives to develop new drugs.
• B) provide heavy competition in markets.
• C) never lead to deadweight loss.
• D) assure firms that their products will make a profit.
• E) be considered natural barriers.

---

Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Profit Margin

A financial metric used to evaluate a company's financial health by revealing the percentage of revenue that exceeds the cost of goods sold.

Investment Turnover

A financial ratio indicating how effectively a company is using its invested capital to generate sales or revenue.

Transfer Price

This refers to the price at which goods and services are traded between divisions within the same company.