How can patent encourage invention

Assignment Help Business Economics

Reference no: EM13831224

(a) Explain the following practice/policy in terms of externalities.

(i) Charitable donation over HK$100 is tax deductible in Hong Kong.

(ii) Government increases the penalty for the drivers who run the “red light”.

(b) Why are some of the products, such as gasoline, taxed more heavily than other goods such as food? Explain your answer in terms of externalities.

Reference no: EM13831224

Questions Cloud

Own price elasticity of demand for the drug : You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($200 million last year) and a low marginal cost of producing the product ($0.45 per pill), your company has yet to show ..

Explain economics of bundling-consumer-producer prospective : We are seeing a merging of media firms. For example, companies like Verizon now provide phone, cell, TV and internet. A common form of selling services involves putting them together in packages or “bundles” and offering them for a lower price than i..

Considering an expansion into a new geographic market : considering an expansion into a new geographic market

Explain the economics of the taxi medallion system : Explain the economics of the taxi medallion system. This is discussed in the text and in numerous places on the web. Why did cities start the medallion system? Do you think it is a good idea? Explain the economics of the ride-sharing firms such as Ub..

How can patent encourage invention : Explain the following practice/policy in terms of externalities. Charitable donation over HK$100 is tax deductible in Hong Kong. Why are some of the products, such as gasoline, taxed more heavily than other goods such as food? Explain your answer in ..

How does technological progress shift labour demand curve : Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping? How does technological progress shift the labour demand curve? Professors, lawyers and doctors receive similar amounts of education, why are pro..

Suppose both product and factor markets are competitive : Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping? How does technological progress shift the labour demand curve? Professors, lawyers and doctors receive similar amounts of education, why are pro..

Between average total cost and average variable cost : The gap between average total cost (ATC) and average variable cost (AVC) becomes larger when output increases. Marginal cost curve cuts the lowest point of the average cost curve.

Indicate changes in consumer surplus and producer surplus : What will happen to the equilibrium price and quantity of hairy crabs if: Use a diagram to show the tax burden on buyers and sellers and briefly explain your answer. (ii) use a separate diagram to indicate the changes in consumer surplus and producer..

User Account

All Pages