In Figure 4.2, at quantities at Q1:

If different people own the different stages of production of a commodity, a contract or market relationship helps to minimize transaction risks and creates economic value

Indicate whether the statement is true or false

A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will happen after the patent expires?

A. The incumbent will leave the market. B. Some firms will enter the industry. C. The incumbent will retain its status as a monopoly but produce at a lower price. D. None of the answers is correct.