Governments grant patents to
A)compensate firms for research and development costs.
B)encourage competition.
C)encourage low prices.
D)encourage firms to reveal secret production techniques.

Question

Quizplus · Accepted Answer

Patents are granted to compensate firms for the high costs of research and development, as they provide temporary exclusivity for the production and commercialization of the patented invention, allowing firms to recoup their investments and earn profits.

Governments Grant Patents to