Ordinarily, governments attempt to promote competition in markets. Why do governments use patents to block entry into some markets when this prohibits competition?
A) Politicians sometimes succumb to pressure from lobbyists to grant favors to businesses for political reasons.
B) Patents are an important source of government revenue.
C) Patents are justified because they are an important means for creating network externalities.
D) Patents encourage firms to spend money on research necessary to create new products.
D
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The quantity of items circulating in the economy that can be used as money is called
A) representative commodity money. B) the money supply. C) commodity money. D) fiat money.
A measure of monopoly power used by the government is the
A) percentage share of the relevant market or market share test. B) profit of the firm compared to other firms in the industry. C) price charged by the firm for goods and services. D) percentage difference between price and marginal cost.