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Consider the figure below that depicts an initially competitive industry with cost c. If a successful R&D innovation that is protected by a patent lowers
Consider the figure below that depicts an initially competitive industry with cost c. If a successful R&D innovation that is protected by a patent lowers cost to c-x , what is the increase in consumer surplus during the patent period? Question 9Answer a. Area A b. Area A + B c. Area B d. There is no increase in consumer surplus
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