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ECO550- Discussion Forum 1 (week 5)

ECO550- Discussion Forum 1 (week 5) - a type of...

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A monopoly is a market structure where there is only one seller that produces and sells a service and or good. However in a monopoly, the companies have the ability to determine their own pricing which would maximize their profit. In the United States there is a patent duration of 17 years, so for this amount of time a company can hold a patent on a specific good or service, limiting other companies’ ability to enter the market which creates an entry barrier. The patent is
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Unformatted text preview: a type of intellectual property law that provides the company rights to a good or service. Patents impact the market by reducing the amount of competition from other companies trying to market the same good at a lowered price, as this cannot happen due to the patent some products will be sold at a much higher price since there are no alternatives....
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