In Question 6.1 with an R& D cost of 150 suppose that the government waits until Woz works out the new process and then changes patent rules, requiring Woz to charge a price no greater than 12. Does Woz stay in business? What happens to consumer surplus and to total surplus? Why don’t governments impose such price controls on patented processes and products?
Answer to relevant QuestionsUse Equation 2.5, the estimated supply function for avocados, Q = 58 + 15p – 20pf, to determine how much the supply curve for avocados shifts if the price of fertilizer rises by $ 1.10 per lb. Illustrate this shift in a ...For trade secrets to effectively protect intellectual property, it is important that the innovation cannot be easily reverse engineered, a process by which a firm can take a rival’s product and determine how it was ...Carrot Patch Dolls, a small doll producer in Malaysia, is considering producing a new doll variety. Production of this doll type requires an initial setup cost, followed by constant variable cost. The cost function of ...Given that the world supply curve is horizontal at the world price for a given good can a subsidy on imports raise welfare in the importing country? Explain your answer.In Question 4.2, what transfer price would maximize the profit of TMX Philippines?
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