Encouraging firms to invest in research and development and individuals to engage in creative endeavors such as writing novels is one justification for
A)resource monopolies.
B)natural monopolies.
C)government-created monopolies.
D)breaking up monopolies into smaller firms.

Question

Quizplus · Accepted Answer

Government-created monopolies, also known as patents or copyrights, provide temporary exclusive rights to inventors and creators to encourage innovation and creativity by ensuring that they will profit from their work. This incentivizes firms to invest in research and development and individuals to engage in creative endeavors.

Encouraging Firms to Invest in Research and Development and Individuals