The owner of a patented invention
A) may or may not have a legal monopoly.
B) is guaranteed a profit since her idea cannot be copied.
C) will always have demand high enough and costs low enough to ensure a profit.
D) will only earn a profit if average total cost is less than price.
Answer: D
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In the Keynesian model in the short run, what is likely to happen to employment after each of the following shocks?
(a) An increase in taxes (b) An increase in consumer spending generated by a reduced desire for saving (c) An increase in the money supply
Economic growth can be pictured in a production possibilities curve diagram by
A) shifting the production possibilities curve in. B) shifting the production possibilities curve out. C) making the production possibilities curve straighter. D) moving from a point inside the production possibilities curve to a point on the curve.