Patentability is a major factor to consider in new-product screening because the use of patents
A) eliminates potential competitors for a period of 12 years.
B) provides the firm with monopolistic powers to the extent that it precludes other firms from successfully competing with the patented product.
C) encourages a firm to have a monopolistic competition environment.
D) reduces the effect of cyclical factors on sales.

Question

Quizplus · Accepted Answer

Patents grant the holder exclusive rights to the patented process, design, or invention for a certain period, typically 20 years, not 12. This exclusivity can indeed provide a form of monopolistic power by preventing other firms from making, using, or selling the patented invention, which is why option B is correct. Options A, C, and D do not accurately describe the primary benefits or functions of patents.

Patentability Is a Major Factor to Consider in New-Product Screening