The purpose of patents is to Encourage innovation by helping firms recoup the costs of research and development.
<h3>What do patents do?</h3>
They are a way to encourage innovation by protecting the rights of the innovator to be the only one to benefit from selling the innovation for a certain amount of time.
This allows the innovator to recoup the amounts they spent on the innovation without worrying about competing with others who will copy the technology.
In conclusion, option B is correct.
Find out more on patents at brainly.com/question/711313.
Answer:
Modified Rebuy
Explanation:
Modified rebuying is the process whereby an individual or an organization makes a purchase that have been previously purchased but this times makes changes to some elements different from the previous purchase like change of suppliers, terms, price and so on. In this case, the buyer reviews the buying situation. Here, the buyer is interested in modifying the specifications of goods previously purchased.
Answer:
The expected rate of return on this investment is:
21%
Explanation:
Cost of computer = $200,000
Annual cash flows for 5 years = $48,271
Total cash flows = $241,355 ($48,271 x 5)
Returns = $41,355 ($241,355 - $200,000)
The expected rate of return = Returns/Costs * 100
or the average of returns and the average of investments (they yield the same results)
Using the total returns and investment:
= $41,355/$200,000 * 100
= 21%
Using the average returns and investment:
= $8,271/$40,000 * 100
= 21%
Answer:
setting the price of the product well below the price charged by the rival
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
If a monopolistically competitive sets price below competitors, losses would be made. So, there is no incentive to do this
Answer: A monopolistic company will produce to the point where the marginal cost is equal to marginal income, which is the production point called optimal.
Marginal Income = Marginal Cost
In other words, from that point the company is not able to obtain more profit if it increases its production. Because it happens that the cost of producing one more unit is greater than the marginal income for that unit, it would be necessary to reduce the level of production because it is excessive.
As in a situation of perfect competition the company is accepting price, then it sells its product at the price given by the market, so its optimal point will be: Marginal Cost = Marginal Income = Price
