Patents and copyrights can:
A) create strong incentives to develop new drugs.
B) provide heavy competition in markets.
C) never lead to deadweight loss.
D) assure firms that their products will make a profit.
E) be considered natural barriers.

Question

Quizplus · Accepted Answer

Patents and copyrights can create strong incentives to develop new drugs by allowing firms to have exclusive rights over the production and distribution of their drugs, therefore allowing for a potential monopoly and a greater chance to recoup research and development costs.

Patents and Copyrights Can