Chap 15 Questions for Review answers

Chap 15 Questions - Lega lly Blnd e Chap 1 laws. 20yearsforpatents,

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Chap 15 Questions for Review answers 1. Government-created monopoly comes from the existence of patent and copyright  laws. Both allow firms or individuals to be monopolies for extended periods of time— 20 years for patents, the life of the author plus 70 years for copyrights. But this  monopoly power is good, because without it, no one would write a book or a song  and no firm would invest in research and development to invent new products or  pharmaceuticals.    2. An industry is a natural monopoly when a single firm can supply a good or service to  an entire market at a smaller cost than could two or more firms. As a market grows, it  may evolve from a natural monopoly to a competitive market. 3. A monopolist's marginal revenue is less than the price of its product because its  demand curve is the market demand curve. Thus, to increase the amount sold, the  monopolist must lower the price of its good for every unit it sells. This cut in price  reduces the revenue on the units it was already selling. A monopolist's marginal revenue can be negative because to get purchasers to buy 
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This note was uploaded on 01/16/2012 for the course PSYCH 373 taught by Professor Marthafaircloth during the Spring '09 term at Campbell.

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Chap 15 Questions - Lega lly Blnd e Chap 1 laws. 20yearsforpatents,

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