MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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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?
The New York Times has stated that Mylan, the company that makes the now infamous Epipen, has become “the poster boy for out of control drug prices.” Why did this Pittsburgh-based company raise prices so much that Americans pay three times as much as Canadians for the same drug? Do you think patents are good for society?
A patent effectively allows a firm to operate as a monopoly while the patent is in effect. Some people argue that the market
power created by patents harms consumers and shouldn't be granted. Others argue that patents are needed to encourage
research and innovation. You can read the article from Forbes to learn more about the history and policy surrounding
patents.
Classify the arguments below as either arguments for patents or arguments against patents.
Arguments For Patents
Arguments Against Patents
Answer Bank
prevents free-riding
encourages higher prices for consumers
prevents competition in the market
research results in a positive externality for society
leads to an ineffient level of production
Chapter 14 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
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
- 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?arrow_forwardQ60arrow_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
- The 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_forwardName-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_forward
- All 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_forwardThe 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_forwardIf patents reduce competition, why does the federal government grant them? The federal government grants patents A. to increase the number of close substitutes available. B. to prevent network externalities. C. to create natural monopolies. D. to encourage firms to collude. E. to encourage firms to spend money on research to create new products.arrow_forward
- How can countries control Monopoly power using public policy or law?arrow_forwardNote: This is an economics question. Based on the attached case: *What are the pros and cons of the creation of a medical marijuana monopoly? *What are the pros and cons of the legalization of medical marijuana by the Canadian government in terms of the price the users pay, the quantity of medical marijuana produced, and resource allocation efficiency during regulation and after its legalization?arrow_forwardExplain in brief. a) Why government should intervention in a monopoly market. b) Give a practical example of government intervention in the monopoly market.arrow_forward
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