Explain licensing invention to the firms in the industry


An industry produces its product, Scruffs, at a constant marginal cost of $50. The market demand for Scruffs is equal to Q=75,000-600P.

A.) If the industry producing Scruffs is purely competitive, what is the maximum benefit that an inventor of a process that will reduce the cost of producing Scruffs by $5 per unit can expect to receive by licensing her invention to the firms in the industry?

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Microeconomics: Explain licensing invention to the firms in the industry
Reference No:- TGS058336

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