Question1.

Suppose that the U.S. government decreases the number of years for which a patent is valid to 5. Apple will... O..develop the iGlasses O..not develop the iGlasses The answer is ambiguous. Following this example, how we can expect the length of patents to affect innovation? Shorter patents will most likely increase innovation Shorter patents will most likely decrease innovationNow suppose that in addition to the tax, the potential employees value the provided healthcare at $10 (H = 10). Find the new equilibrium. Consider intuitively whether and how the workers valuing the healthcare changes the deadweight loss created by the tax alone. * p: Q=l