Why does the government allow some markets to be monopolized by granting patents?
A) to promote a more equal distribution of income
B) to correct for negative externalities
C) to ensure lower prices for consumers in the short run
D) to promote technological progress

Question

Quizplus · Accepted Answer

The government allows markets to be monopolized by granting patents to promote technological progress. Patents incentivize individuals or firms to invest time and resources in developing new innovative products, which leads to technological progress and long-run economic growth. Patents grant the inventor exclusive rights to sell and produce the product for a set period, allowing them to recoup their investment and earn profits.

Why Does the Government Allow Some Markets to Be Monopolized