When the government wants to give an exclusive right to one firm to produce a product, it
A)imposes a tariff on imports of the product.
B)imposes a quota on imports of the product.
C)grants a patent or copyright to an individual or firm.
D)uses antitrust laws to keep other firms from entering the market.

Question

Quizplus · Accepted Answer

Granting a patent or copyright to an individual or firm is a way of giving exclusive rights to produce a product for a limited time period. This is done to encourage innovation and ensure that the creator or inventor has a monopoly over their creation or invention. It is a commonly used strategy in the pharmaceutical industry, where the cost of research and development is high and firms need to recoup their investment. A patent or copyright gives the owner the right to exclude others from using, making, or selling their invention or creation without their permission.

When the Government Wants to Give an Exclusive Right to One