Q14. Woz Enterprises specializes in electrical components. The market for one particular component is perfectly competitive and in Iong run equilibrium. The marginal cost is constant at 30 . Woz can develop a much cheaper process for producing this component, lowering its marginal cost to 6. The R\&D cost of developing the new process would be F and Woz would be able to obtain a patent for it and become a monopoly supplier of this component. Demand for the product over the relevant period is given by p=462Q Suppose the cost of the investment is F=125 and 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 $8. Does Woz stay in business? Woz business. What happens to consumer surplus and to total surplus? The change in consumer surplus (CS) is CS=$ (Enter your response as a whole number.) The change in total surplus is Total Surplus =$ (Enter your response as a whole number.) Why don't governments impose such price controls on patented processes and products? Price controls on patented products A. create asymmetric information. B. create public goods. C. discourage research and investment. D. result in externalities. E. legalize excessive profits. Q14. Woz Enterprises specializes in electrical components. The market for one particular component is perfectly competitive and in Iong run equilibrium. The marginal cost is constant at 30 . Woz can develop a much cheaper process for producing this component, lowering its marginal cost to 6. The R\&D cost of developing the new process would be F and Woz would be able to obtain a patent for it and become a monopoly supplier of this component. Demand for the product over the relevant period is given by p=462Q Suppose the cost of the investment is F=125 and 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 $8. Does Woz stay in business? Woz business. What happens to consumer surplus and to total surplus? The change in consumer surplus (CS) is CS=$ (Enter your response as a whole number.) The change in total surplus is Total Surplus =$ (Enter your response as a whole number.) Why don't governments impose such price controls on patented processes and products? Price controls on patented products A. create asymmetric information. B. create public goods. C. discourage research and investment. D. result in externalities. E. legalize excessive profits