1. If the Bill and Melinda Gates Foundation were to buy out and destroy the patent for Combivir, which of the following would NOT be one of the effects?
A. The price of Combivir would fall
B. The number of people treated with Combivir would rise
C. Drug companies would have no incentive to create new and better drugs
2. Because Colgate owns patent number 5,544,091, only Colgate sells toothpaste with a flip top cap, while others use the more traditional screw top. A patent probably wasn't a necessary incentive for Colgate to develop the flip top cap, so why did they patent the cap?
A. To establish market power
B. To increase consumer demand for toothpaste
C. To decrease fixed costs
D. To decrease the marginal cost of production
3. To better feed his army, Napoleon established a technology prize that led to the development of canning in 1809. Napoleon required the inventor to publish the method. Napoleons reign as emperor ended after his defeat at Waterloo, a defeat which might not have been so decisive had canned food not made Its way to the enemies mouths. By demanding the inventor to publish his method, what did napoleons force the inventor to give up?
A. Consumer surplus
B. Economies of scale
C. Deadweight loss
D. A monopoly
4. Economies of scale are:
A. The advantages of small-scale production that reduce average cost as quantuty decreases
B. The advantages of large-scale production that reduce average cost as quantity increases
C. Countries that specialize in selling devices for measuring weight
D. Regulations that specify a minimum firm size.