Asked by
Madison Marlow
on Nov 05, 2024
Verified
The Time-for-a-Change wristwatch company holds a patent on holographic wristwatches. The company can earn a profit on the sale of holographic wristwatches
A) in the short run but not in the long run because new firms will enter the industry in the long run.
B) only in the long run because government regulations prevent monopolists from earning profits in the short run.
C) in the long run but not the short run because the monopolist will face competition in the short run.
D) in the long run because entry into the industry by new firms is blocked until the patent expires.
Patent
A legal right granted to an inventor, giving them the exclusive right to make, use, or sell their invention for a certain period of time.
Long Run
A period in economic analysis during which factors of production and costs are fully adjustable, allowing all inputs to production to be varied.
- Recognize the role of patents in establishing and maintaining monopoly power.
Verified Answer
MS
Learning Objectives
- Recognize the role of patents in establishing and maintaining monopoly power.