LAST WORD Answer the following questions based on the Last Wordfrom this chapter.

a. Patents can speed up therate of creative destruction by

multiple choice 1

• creating uncertainty for the patent holder so that innovation is discouraged.
• creating a profit incentive that encourages innovation, which speeds up creative destruction.
• restricting the use of technology so that creativity is destroyed.
• eliminating the threat of competition, which slows down innovation and speeds up creative destruction.

b. Patents can slow down the rate of creative destruction by

multiple choice 2

• eliminating the threat of competition and increasing patent revenues for companies, which slows down creative destruction.
• destroying the profit incentive that encourages innovation, thereby slowing the rate of creative destruction.
• creating certainty for the patent holder so that innovation is encouraged.
• restricting the use of technology so that creativity is controlled.

c. Industries with (Click to select) low high costs need the incentive of (Click to select) high low profits that a patentprovides. This gives them an opportunity to recovertheir R&D costs.