The longer a patent lasts,
A) the greater the potential economic profits available to an innovator.
B) the lower the deadweight loss.
C) the lower the average costs of production.
D) the less innovation there will be.

Question

Quizplus · Accepted Answer

A longer patent duration means that an innovator has the exclusive rights to produce and sell the invention for a longer period, thus potentially generating more economic profits. This incentivizes more innovation because an innovator can expect a greater return on investment.

The Longer a Patent Lasts