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Intellectual Property Rights Are Protected by Patents

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Intellectual property rights are protected by patents.One of the controversial aspects of the patent system is the patents that are granted to pharmaceutical companies.Critics of the patent system claim that these increase the price of life-saving drugs and make them unaffordable to the poor.For example,patents restrict the availability of AIDS medicine in developing countries that require them the most.What would happen if drugs were not allowed to be patented in the interests of increasing their availability at a lower price? How do the long-run and short-run effects differ?

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Patents allow pharmaceutical companies t...

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