A patent gives the inventor monopoly control over the patented good. Patents also
A)lead to lower prices for goods.
B)create incentives to develop new products.
C)lead to an increase in the number of producers of the patented good.
D)lead to increased entry into the market for the patented good.

Question

A patent gives the inventor monopoly control over the patented good. Patents also
A)​lead to lower prices for goods.
B)​create incentives to develop new products.
C)lead to an increase in the number of producers of the patented good.
D)​lead to increased entry into the market for the patented good.

Quizplus · Accepted Answer

Patents create incentives for inventors to invest time and money into developing new products and processes, as they are guaranteed exclusive rights to their invention for a limited time period. This can lead to greater innovation and a wider variety of goods being available in the market. However, it does not necessarily lead to lower prices, increased entry into the market, or an increase in the number of producers (as only the patent holder has the legal right to produce and sell the patented good).

A Patent Gives the Inventor Monopoly Control Over the Patented