A patent on a new product benefits the firm securing it by
A)limiting the direct imitation of the product by rivals for many years.
B)enabling the firm to retain "trade secrets" about the product.
C)reducing the firm's legal expenses.
D)increasing the speed of diffusion of the new product.

Question

Quizplus · Accepted Answer

A patent protects a firm's new product by legally preventing direct imitation by competitors for a specified period, typically 20 years, allowing the patent holder to potentially recoup their investment and earn profits without immediate competition.

A Patent on a New Product Benefits the Firm Securing