A patent gives a firm a monopoly in production of the patented good. While the monopoly profits

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A patent gives a firm a monopoly in production of the patented good. While the monopoly profits provide an incentive for firms to innovate, the monopoly power imposes a cost on consumers. Why do consumers suffer a cost? Is it greater than the profits earned by the monopolist?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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