Patent buyouts could reduce deadweight loss from monopolies, while still protecting the incentive to innovate.

Question

Quizplus · Accepted Answer

Patent buyouts refer to a system where the government offers to purchase patents from inventors or companies that hold a monopoly in a particular market. This reduces the deadweight loss associated with monopolies while still encouraging innovation by compensating the patent holders for their efforts. Therefore, the statement is true.

Patent Buyouts Could Reduce Deadweight Loss from Monopolies, While Still