Temporary monopolies via the provision of sole ownership rights to profit from the production,use,or sale of a good are provided by:
A)patents and copyrights.
B)natural monopolies.
C)profit-maximizing behavior.
D)network externalities.

Question

Quizplus · Accepted Answer

Patents and copyrights provide temporary monopolies by granting exclusive rights to produce, use or sell a specific product or technology for a certain period of time. This is done to incentivize innovation and protect intellectual property. Natural monopolies arise when economies of scale are so large that one company can provide the entire market demand at a lower cost than multiple firms. Profit-maximizing behavior and network externalities do not necessarily involve the provision of sole ownership rights.

Temporary Monopolies Via the Provision of Sole Ownership Rights to Profit