-The owner of a patented invention
A) may or may not have a legal monopoly.
B) is guaranteed a profit since her idea cannot be copied.
C) will always have demand high enough and costs low enough to ensure a profit.
D) will only earn a profit if average total cost is less than price.

Question

-The owner of a patented invention
A) may or may not have a legal monopoly. 
B) is guaranteed a profit since her idea cannot be copied. 
C) will always have demand high enough and costs low enough to ensure a profit. 
D) will only earn a profit if average total cost is less than price.

Quizplus · Accepted Answer

A patent gives the owner exclusive rights to the invention, but profit is only ensured if the price exceeds average total cost.

-The Owner of a Patented Invention