Question

Question 47 1 pts Government policies, in addition to patent protection that can spur innovation, include O government regulations that require innovative products. O reduction of negative externalities. O tax breaks for companies that invest in research and development.

Answer 1

47) Tax breaks for companies that invest in research and development.

(Tax breaks should be given to companies that invest in research and development.And these tax breaks should be based on the as amount of research and development they do. A firm which invests more in research and development should be provided with more deduction in taxes. As a result, firms will have an incentive to invest more in research and development.)

49) public goods tend to be difficult for private firms to produce Profitably because of the large number of potential free riders.

( Public goods have two important characteristics. They are non excludability and non rivalry in consumption. Nobody can be restricted from the consumption of a public good and it gives rise to free rider problem. Free rider problem would have an adverse impact on the Profitability of the private firm.)

53) The firm will reject Berry's counter salary number and hire someone else.

(A firm with monopsonist power has the ability to pay lower prices to its inputs. When it comes to Labour, it's possible for the monopsonist to pay a lower wage. Still, it can prevail in a competitive market without lossing its workers to competing employers. Monopsonist has the power in setting wages and choosing how many workers to employ. Therefore, monopsonist won't accept Barry's counter salary number and would hire someone else .)