Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 14, Problem 4QAP
a)
To determine
The way to deal the given disturbing abuses of the patent system.
b)
To determine
The categorization of industries.
c)
To determine
The method for encouraging research in areas with no patent protection.
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Students have asked these similar questions
1. A U.S. patent for the drug that most effectively treats HIV prevents other drug companies from producing a comparable substitute for patients.
a. What is the effect of patent protection on the demand for a drug? How does the shape of the demand curve differ before and after a patent has expired? Support your explanation with a graph.
b.Demand curves respond to preferences, income, and costs of substitute and complements. Discuss how these factors determine a country’s demand for HIV treatments. How might the effects of the patent protection differ across countries?
Under which circumstances is patent protection most necessary?
Where information about technological improvements disseminates slowly
Where information about technological improvements disseminates rapidly
In a market with few sellers
Where the cost of research and development is very low
Give typing answer with explanation and conclusion
When a pharmaceutical company discovers a new drug, patent law gives it market power by guaranteeing: Question 7 options: sole ownership of the right to sell the drug for a limited number of years. partial ownership of the right to sell the drug for an unlimited number of years. sole ownership of the right to sell the drug for an unlimited number of years. partial ownership of the right to sell the?
Chapter 14 Solutions
Microeconomics
Ch. 14.1 - Prob. 1QCh. 14.1 - Prob. 2QCh. 14.1 - Prob. 3QCh. 14.1 - Prob. 4QCh. 14.1 - Prob. 5QCh. 14.1 - Prob. 6QCh. 14.1 - Prob. 7QCh. 14.1 - Prob. 8QCh. 14.1 - Prob. 9QCh. 14.1 - Prob. 10Q
Ch. 14.A - Prob. 1QECh. 14.A - Prob. 2QECh. 14.A - Prob. 3QECh. 14.A - Prob. 4QECh. 14 - Prob. 1QECh. 14 - Prob. 2QECh. 14 - Prob. 3QECh. 14 - Prob. 4QECh. 14 - Prob. 5QECh. 14 - Prob. 6QECh. 14 - Prob. 7QECh. 14 - Prob. 8QECh. 14 - Prob. 9QECh. 14 - Prob. 10QECh. 14 - Prob. 11QECh. 14 - Prob. 12QECh. 14 - Prob. 13QECh. 14 - Prob. 14QECh. 14 - Prob. 15QECh. 14 - Prob. 16QECh. 14 - Prob. 17QECh. 14 - Prob. 18QECh. 14 - Prob. 19QECh. 14 - Prob. 20QECh. 14 - Prob. 21QECh. 14 - Prob. 22QECh. 14 - Prob. 23QECh. 14 - Prob. 24QECh. 14 - Prob. 25QECh. 14 - Prob. 1QAPCh. 14 - Prob. 2QAPCh. 14 - Prob. 3QAPCh. 14 - Prob. 4QAPCh. 14 - Prob. 5QAPCh. 14 - Prob. 6QAPCh. 14 - Prob. 7QAPCh. 14 - Prob. 1IPCh. 14 - Prob. 2IPCh. 14 - Prob. 3IPCh. 14 - Prob. 4IPCh. 14 - Prob. 5IPCh. 14 - Prob. 6IPCh. 14 - Prob. 7IPCh. 14 - Prob. 8IPCh. 14 - Prob. 9IP
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Similar questions
- Q60arrow_forwardExhibit 12.4 The Market Demand Curve for Claritin Price $8 With patent protection from the government, the demand curve that Schering-Plough faces for its sales of Claritin is the entire market. For example, if Schering-Plough chose a price of $4, then it would be able to sell 400 million units, but the demand curve shows that if it chose a price of $6 or higher, it wouldn't sell any Claritin, despite having a monopoly. 7 4 3 2 DClaritin 1 Let's assume/lestimate: What would the market 100 200 300 400 500 600 700 800 price and the quantity be under perfect competition? Demand: p=7-x/150 Quantity (in millions of pills) Cost = 1*x %3D And what for the Marginal Cost c'=1 monopoly?arrow_forwardWhich of the following are examples of how patents are not always a perfect way to encourage innovation: Group of answer choices patents in the U.S. do not last very long. it is very expensive to apply for a patent not every new idea can be protected with a patent or copyright.arrow_forward
- If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?arrow_forwardPatent for NoSmak. A potential new drug. NoSmak, cures lip-smacking with one dose, but research and development would cost $50 million. The monopoly profit (earned while a single firm produces the product) will be $5 million per year. After a patent expires, the original developer of the drug will have sufficient brand loyalty to earn $2 million per year for another 10 years. a. What is the shortest patent length required to induce a firm to develop the drug? years. (Enter your response as an integer)arrow_forwardThe Netherlands abolished its patent system in 1869. What did subsequent innovation in the Netherlands teach us about patents? Since more low-income households started inventing, patents must be an exclusive institution Since fewer women were inventing, patents are an inclusive institution Patents aren't necessary for innovation, but they can affect the types of innovation we get. Without patents, societies become stagnantarrow_forward
- Name-Brand Prescription Drugs Market—“Happy Pill”—that greatly improves life but is not essential to life. Using supply and demand analysis, explain what happens to the market price and quantity of a name-brand prescription drug Happy Pill if its patent expires. Using supply and demand analysis explain why Happy Pill might be advertised. Using supply and demand analysis, explain what would happen to the price and quantity of Happy Pills if there was a severe recession, and people lost their jobs, which included a health-care benefit that payed for prescription drugs.arrow_forwardcouldn't legalizing marijuana generate significant revenue? to the US economyarrow_forwardAll barriers to entry are not created through market conditions. Barriers to entry, such as patents, licenses, or international trade restrictions, may be government imposed. How do government–imposed barriers such as patents impact consumers and suppliers in these markets?arrow_forward
- The government’s primary goal in awarding patents is to: A. Make sure that patent holders earn substantial profit. B. Create more monopoly firms. C. Create a perfectly competitive market. D. Encourage more innovation.arrow_forwardHow can countries control Monopoly power using public policy or law?arrow_forwardJustify protection of patent based on social cost,sunk cost and social benefit theory.arrow_forward
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