Question : 31) The 10-year protection period from generic competition for drug : 1387901

31) The 10-year protection period from generic competition for drug manufacturers is a form of

A) copyright.

B) trademark.

C) hallmark.

D) patent.

32) Network externalities

A) can only exist when there are economies of scale.

B) prevent the dominance of a market by one firm.

C) exist when the usefulness of a product increases with the number of consumers who use it.

D) are created when celebrity endorsements of products lead to a surge in the demand for those products.

33) What type of protection does U.S. law grant the creator of a book, film or piece of music?

A) a public franchise, which grants the exclusive right to use the creation during the author’s lifetime and to his or her heirs for 70 years after the author’s death

B) a copyright, which grants exclusive rights to the creation’s author for 20 years after the work is created

C) a patent, which grants the exclusive right to use the creation during the author’s lifetime and to his or her heirs for 70 years after the author’s death

D) a copyright, which grants the exclusive right to use the creation during the author’s lifetime and to his or her heirs for 70 years after the author’s death

34) The International Nickel Company of Canada is often cited as an example of monopoly. What was the source of the barrier to entry that gave this firm monopoly power?

A) It was a public enterprise; therefore, the Canadian government blocked entry into the market for nickel.

B) There were important network externalities in the production of nickel.

C) Economies of scale resulted in the company becoming a natural monopoly.

D) control of a key resource

35) The International Nickel Company of Canada is often cited as an example of monopoly, but International Nickel eventually lost its monopoly. What event was responsible for this?

A) New technology allowed other firms to achieve network externalities after World War II.

B) The Canadian government, which had owned International Nickel, sold the company after World War II. The government no longer blocked entry into the market for nickel.

C) Competition in the market for nickel increased after nickel fields were developed in Russia after World War II.

D) Competition in the market for nickel increased after Canada signed the North American Free Trade Agreement with the United States and Mexico in 1994.

36) In the United States, barriers to entry in professional team sports (for example, football and baseball) result from

A) the draft of college players, which grants teams exclusive signing rights to individual players.

B) long-term leases teams sign for stadiums and ballparks in major cities.

C) television contracts, which give networks the exclusive rights to broadcast games.

D) the reserve clause, which is a provision in contracts of professional athletes that require them to play for specific teams over the length of their contracts.

37) The De Beers diamond mining and marketing company of South Africa became one of the most profitable and longest-lived monopolies in history. Which of the following has always threatened De Beers’ control of the diamond market?

A) Since few diamonds are ever destroyed, De Beers has constantly faced possible competition from other firms reselling diamonds.

B) Competition from imitation diamonds: Technology has made it possible to make fake diamonds look exactly like real diamonds.

C) Competition from other gemstones, including rubies and emeralds, that have become more popular over time.

D) At different times in the past, some countries have banned the importation of diamonds from South Africa for political reasons.

38) BHP Billiton is a Canadian company that owns mines in Canada that

A) produce nickel. After World War II, BHP Billiton began to compete with another Canadian firm, the International Nickel Company. This competition eventually ended International Nickel’s monopoly in this market.

B) produce bauxite, the mineral needed to produce aluminum. BHP Billiton began to mine bauxite after World War II. This competition eventually ended the Aluminum Company of America (ALCOA)’s monopoly in this market.

C) produce coal. Until World War II, BHP Billiton had a monopoly on coal in Canada.

D) produce diamonds.

39) After having a monopoly in the diamond market for many years, by 2000 the De Beers company faced competition from other companies. To maintain its market share, De Beers

A) began buying so-called “blood diamonds” in order to keep these diamonds out of the control of other diamond companies.

B) adopted a strategy of differentiating its diamonds. Each of its diamonds is now marked with a microscopic brand.

C) bought diamond mines in Canada and Russia that had been its competitors.

D) lowered the prices of its diamonds to make the market appear less profitable to potential competitors.

40) Some economists argue that Microsoft become a monopoly in the market for computer software by developing MS-DOS, an operating system used for the first IBM personal computers. The more people who used MS-DOS-based programs, the greater the usefulness of a using a computer with an MS-DOS operating system. The explanation for Microsoft’s monopoly is

A) the development of new technology that other firms could not copy.

B) control of a key resource which, in this case, is the MS-DOS operating system.

C) network externalities.

D) patents Microsoft obtained when it developed the MS-DOS operating system.