One of the effects of patents is to
A) reduce incentives for innovation.
B) give firms incentives to worry less about minimizing production costs.
C) temporarily provide the patent owner with monopoly power.
D) reduce the degree of monopoly power in the short run.

Question

Quizplus · Accepted Answer

Patents grant exclusive rights to inventors, allowing them to temporarily hold monopoly power over their invention, incentivizing innovation by protecting their intellectual property from competitors.

One of the Effects of Patents Is to