Which of the following would tend to narrow the gap between the private return to innovation and the social return to innovation?
A) More spending on research and development.
B) More competition in the production of newly created goods and services.
C) A patent.
D) An increase in overall scientific productivity.

Question

Quizplus · Accepted Answer

A patent allows the inventor to prevent others from producing the invention for some years, allowing the inventor to gain a reward for innovation in the form of temporary monopoly profits. This increases the private return to innovation.

Which of the Following Would Tend to Narrow the Gap