To encourage firms to engage in research and development (R&D), governments grant temporary monopolies in the production of the goods that result from R&D called:
A)patents.
B)land grants.
C)anti-trust exemptions.
D)all of the above.

Question

Quizplus · Accepted Answer

Patents are temporary monopolies granted to firms as an incentive to engage in research and development. This allows firms to have exclusive rights to produce and sell the goods resulting from their R&D for a certain period, which can help them recoup their R&D expenses and make a profit. The other options, land grants and anti-trust exemptions, do not directly relate to R&D incentives.

To Encourage Firms to Engage in Research and Development (R&D)