Suppose a firm is considering whether to undertake research to develop a new technology. Additionally, suppose it would be beneficial for society if the firm provide the new technology. What could lead to market failure in this example? Market failure could result if O A. the technology when made available could be duplicated by other producers. O B. the firm could obtain a patent for the technology. OC. the government were to instead supply the technology. O D. the firm would earn profit from providing the technology. OE. the technology were rival and excludable.

Suppose a firm is considering whether to undertake research to develop a new technology. Additionally, suppose it would be beneficial for society if the firm provide the new technology. What could lead to market failure in this example? Market failure could result if O A. the technology when made available could be duplicated by other producers. O B. the firm could obtain a patent for the technology. OC. the government were to instead supply the technology. O D. the firm would earn profit from providing the technology. OE. the technology were rival and excludable.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section12.2: Taxes And Efficiency

Problem 2QQ

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