In the context of Porter's five forces, what impact will patents have on a business?
A)Patents will increase market competition.
B)Patents will increase the number of substitutes for a given product.
C)Patents will reduce the threat of new entrants in an industry.
D)Patents will reduce the bargaining power of suppliers.

Question

Quizplus · Accepted Answer

Patents create a barrier to entry for new competitors, as they make it more difficult and expensive for them to develop similar products without infringing on the patent. This reduces the threat of new entrants in the industry.

In the Context of Porter's Five Forces, What Impact Will