Patents
A) are granted only to competitive firms and not monopolies.
B) require that monopolies increase the amount they produce.
C) increase the incentive to capture economies of scale.
D) increase the incentive to innovate.
E) grant the holder a monopoly that lasts forever.

Question

Quizplus · Accepted Answer

Patents provide a legal monopoly for a limited time (usually 20 years) to the inventors of new products or processes, providing them the incentive to invest in research and development and innovate.