Suppose a new vaccine for Lyme disease is developed by Merck, a large drug company. Which of the following is most likely to occur?
A) Merck will apply for a patent on the vaccine that grants it the monopoly rights to the vaccine for many years.
B) Merck will not tell anyone about its discovery though it will sell the vaccine.
C) Other firms will quickly copy the formula making the market for the vaccine competitive.
D) Merck will have a monopoly on this vaccine because of economies of scale.

Question

Quizplus · Accepted Answer

Merck is likely to apply for a patent on the new vaccine, which would grant it exclusive rights to manufacture and sell the vaccine for a certain period, typically 20 years. This legal protection prevents other companies from copying the formula, ensuring Merck maintains a monopoly on the vaccine during the patent period.

Suppose a New Vaccine for Lyme Disease Is Developed by Merck