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Author Question: Patents provide a firm with a monopoly on a given product. What is the economic rationale for ... (Read 16 times)

saliriagwu

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on: Jun 29, 2018
Patents provide a firm with a monopoly on a given product. What is the economic rationale for granting patents?
 
  What will be an ideal response?

Question 2

In an unregulated competitive market, the presence of marginal external cost of a good or service results in overproduction.
 
  Indicate whether the statement is true or false


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frogdreck123456

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The rationale for patents is that without a patent, competitors could copy an innovation and drive the economic profit to zero. As a result, firms would have little incentive to innovate.

Answer to Question 2

TRUE


saliriagwu

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

vickybb89

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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