When governments grant patents
A) producers earn profits that are substantially higher than would occur in a competitive market.
B) consumers pay a higher price than they would in a competitive market.
C) consumers are likely to pay lower prices than they would in a competitive market.
D) Both A and B are correct.

Question

Quizplus · Accepted Answer

Patents grant producers exclusive rights to their inventions, leading to higher profits and higher prices for consumers due to the lack of competition.

When Governments Grant Patents