Answer the following statement(s) true (T) or false (F)
1. Patents have ambiguous welfare consequences because they both create monopoly power and promote inventive activity.
2. The competition among firms to acquire the rights to legal barriers to entry helps to reduce the welfare costs of monopoly.
3. Social gain is lowered when a monopoly begins to practice price discrimination.
4. When a simple profit-maximizing monopoly begins to practice second-degree price discrimination, both consumers and the monopoly will benefit.
5. Both first-degree price discrimination and the two-part tariff, when perfectly implemented, reduce consumers' surplus to zero.
1. False
2. False
3. False
4. True
5. True
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An economy has the income shares information in the table above. Which of the following is TRUE?
A) The information in the table represents the income distribution in the United States. B) Income in the U.S. economy is more equally distributed than that represented in the table. C) Income in the U.S. economy is less equally distributed than that represented in the table. D) The information in the table represents the wealth distribution in the United States.
List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor
What will be an ideal response?