Which of the following market changes would be expected to occur when a patent expires?

Question

Quizplus · Accepted Answer

When a patent expires, it allows other companies to produce generic versions of the product without being in violation of intellectual property laws. This leads to an increase in generic products, which usually results in a decrease in market price. There may be a decrease in industry output if the original patent holder decides to produce less of the product due to increased competition, but this is not always the case. An increase in market price is not expected.

Which of the Following Market Changes Would Be Expected to Occur