The merits of a patent system is
A) the patent system gives firms strong incentives to take the risk of substantial research and development costs.
B) the patent system may precipitate the development of new products.
C) granting monopoly power through a patent may be beneficial from society's perspective.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the above options are merits of a patent system. A patent system provides incentives to firms to invest in substantial research and development costs, which may lead to the development of new products. Granting a monopoly power through a patent can be beneficial from society's perspective if it leads to the creation of new and innovative products that may not have been developed without the incentive of monopoly profits. Therefore, all of the options mentioned are the merits of a patent system.

The Merits of a Patent System Is