The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A patent issued by the government, gives a firm monopoly power on certain products or discoveries.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A patent issued by the government, gives a firm monopoly power on certain products or discoveries.

Quizplus · Accepted Answer

Yes, a patent issued by the government gives a firm the exclusive right to make, use, and sell a particular product or discovery. This gives the firm monopoly power in that particular market, as no other firm can legally produce or sell the same product or discovery without the patent holder's permission.

The Figure Given Below Shows the Cost and Revenue Curves