Copyrights and patents are examples of barriers to entry that afford firms monopoly pricing powers.

Question

Quizplus · Accepted Answer

Copyrights and patents provide legal protection for the exclusive rights of a firm to produce and sell a particular product or service, which can prevent or limit competition in the market and allow the firm to charge higher prices than it would in a competitive market. Therefore, they can serve as barriers to entry that give the firm monopoly pricing power.

Copyrights and Patents Are Examples of Barriers to Entry That