When governments intervene by effectively identifying and punishing producers who use protected ideas without license,it is dealing with the problem of _______ in order to ______the profits of private firms.

Question

Quizplus · Accepted Answer

Non-excludability refers to the fact that the use of protected ideas can be easily replicated or shared without any additional cost. This creates a situation where producers and consumers can benefit from the ideas without actually paying for them, which means that there is less incentive for private firms to invest in research and development. By identifying and punishing producers who use protected ideas without license, governments are effectively increasing the excludability of these ideas and therefore increasing the profits of private firms who own them. Choice C is therefore the correct answer.

When Governments Intervene by Effectively Identifying and Punishing Producers Who