Suppose that, in order to invent a new product, a firm has t

Homework Assistance Economics Suppose that, in order to invent a new product, a firm has t

Economics

Suppose that, in order to invent a new product, a firm has t

Suppose that, in order to invent a new product, a firm has to spend $80 on research and development…. Show more Suppose that, in order to invent a new product, a firm has to spend $80 on research and development. If the firm invents the product the government will grant it a patent for t years, but after years enough firms will enter the market so that each firm earns zero profits in the long-run. If the firm%u2019s annual costs are: (C(Q)=Q^{2}+2Q+2) And the annual demand for the product is: (Q^{D}=7-0.5p) What would t have to be for the firm to be willing to invent the product? • Show less

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