BOOKS/ RESOURCES: Managerial Economics

Managerial Economics & Business strategy

(tenth edition) by Baye Michael

SKU: MBS_7270353_new

Edition: 10TH 22

Publisher: MCG

ISBN10: 1264373880

ISBN 13: 9781264373888

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1.) If all the assumptions of perfect competition (stated on page 232 of the textbook) hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? Please give an explanation.

2.)A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will happen after the patent expires (will the market remain a monopoly)? Please give an explanation.

3.) Which type of a firm, monopolistically competitive or a monopoly, will have a greater incentive to advertise its product? Please give an explanation.