Patents:
A) provides the public with reliable information about the performance of a firm.
B) increases the risk faced by entrepreneurs.
C) specifies the term of exchange facilitating exchange between strangers.
D) increases the profitability of inventions encouraging firms to develop new products.

Question

Quizplus · Accepted Answer

Patents provide a legal monopoly to the holder for a certain period of time, which can increase the profitability of the invention and encourage firms to invest in research and development of new products. Therefore, option D is the correct choice.