Question

In a patent-driven market, using the concept of minimum efficient scale of production, explain what would happen to competiton and to price when the patent expires?

I don't see how I can interweave the minimum efficient scale of production into this question. I know that if the patent expires, competition will increase and the price will drop to the average total cost. Any ideas?

Related Questions

22. China is adopting …. (A) a driven-market economy. (B) a market-driven economy. (C) a driven-e... Production through the firm is more often efficient than market exchange when: How are the capital resources used in production A. They allow producers better access to world m... How are the capital resources used in production A. They allow producers better access to world mar...