A patent:
A)specifies the term of exchange,facilitating exchange between strangers.
B)increases the profitability of inventions,encouraging firms to develop new products.
C)provides the public with reliable information about the performance of a firm.
D)increases the risk faced by entrepreneurs.

Question

Quizplus · Accepted Answer

A patent grants exclusive rights to the holder to make, use, and sell an invention for a limited period (usually 20 years). This exclusivity enables the inventor to charge a higher price for their invention, which increases profits and incentivizes firms to develop new products. Therefore, option B is the correct answer. Options A, C, and D are incorrect because they do not accurately describe the purpose of a patent.

A Patent