Chapter 17, Problem 16PS

Summary Introduction

To analysis:

In the situation of expiration of patent, the changes in the industry, impact on overall growth of the industry and the stage of the industrial cycle in which this firm falls.

Introduction:

After expiration of patent, there will be hard competition and a decrease in the profit margins. This is due to the fact that patent is important to earn good image and profits in the industry otherwise competitors enters and conquer the market.