Week 8: Microeconomics: Putting It All Together (Mar 1 - Mar 7) - Homework Homework Week 8 Assignment This week your homework assignment is to answer the following question. Since you only have one problem this week, take the time necessary to answer using the microeconomic concepts that you have learned over the last eight weeks: "Government involvement in general scientific research has been justified on the grounds that advances in knowledge are public goods - once produced, information can be shared at virtually no cost. A new production technology in an industry could be made available to all firms, reducing costs of production, driving down price and benefiting the public. The patent system, however, allows private producers of "new knowledge" to exclude others from enjoying the benefits of that knowledge. Inventors would have little incentive to produce new knowledge if there were no possibility of profiting from their inventions. If one company holds exclusive rights to an advanced
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