After a patent on a product expires,
A) other firms must wait to mimic the product.
B) all negative and positive externalities are internalized.
C) rivals can start to mimic the product.
D) no other firms can mimic the product.
E) no further profits are able to be made by the original producer of the good.

Question

Quizplus · Accepted Answer

When a patent on a product expires, it means that the exclusive rights to produce and sell the product have ended, and other firms can now start producing and selling similar products without facing any legal consequences. Therefore, option C correctly states that rivals can start to mimic the product.

After a Patent on a Product Expires