Which of the following statements is true about patents and copyrights? (i) They both have benefits and costs.
(ii) They lead to higher prices.
(iii) They enhance the ability of monopolists to earn above-average profits.
A)(i) and (ii)
B)(ii) and (iii)
C)(ii) only
D)(i), (ii), and (iii)

Question

Which of the following statements is true about patents and copyrights? (i)	They both have benefits and costs.
(ii)	They lead to higher prices.
(iii)	They enhance the ability of monopolists to earn above-average profits.
A)(i) and (ii)
B)(ii) and (iii)
C)(ii) only
D)(i), (ii), and (iii)

Quizplus · Accepted Answer

Patents and copyrights both have benefits (such as encouraging innovation and creativity) and costs (such as limiting access and competition). They can lead to higher prices by granting exclusive rights, and they can enhance the ability of monopolists to earn above-average profits by reducing competition.

Which of the Following Statements Is True About Patents and Copyrights