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Accelerate the diffusion of new technologies b create

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Unformatted text preview: ay give an established firm a cost advantage over a potential rival in a related market. B. they lead to the creation of conglomerate firms. C. they lead to natural monopolies. D. All of the above. 29. The purpose of a patent is to A. accelerate the diffusion of new technologies. B. create incentives for innovation. C. to protect domestic firms from foreign competition. D. ensure that production costs are not driven up by excessive competition. 30. Monopoly is costly to society because A. monopoly must be regulated, and regulation is costly. B. it means that an exchange may not occur between buyer and seller even when WTP exceeds the cost of production. C. monopolies often have exclusive control over some technologies. D. production costs typically rise as the level of production rises. 45 31. Adverse selection arises from asymmetric information about A. actions. B. characteristics. C. efforts to reduce risk. D. All of the above. 32. Consider the market for insurance. Adverse selection...
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This document was uploaded on 03/03/2014.

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