Patents create monopolies, and monopolies have the ability to exercise market power. This ability results in all of the following except the ability to:
a. appropriate all surplus value turning it into monopoly profits.
b. restrict output below the social optimum.
c. charge higher prices.
d. gain exclusive rights to a market and sell a product for a specific time period.
a. appropriate all surplus value turning it into monopoly profits.
Economics
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Collective bargaining agreements that prohibit wage cuts for the duration of the contract contribute to:
A. an increase in aggregate supply. B. a price level that is inflexible downward. C. a multiplier effect. D. a wealth effect.
Economics
A game in which the players explicitly coordinate their decisions to make themselves better off is a
A. negative-sum game. B. zero-sum game. C. noncooperative game. D. cooperative game.
Economics