A justification for patents is that without patents consumer surplus would be
A) larger than with the patent.
B) zero since the product would not be invented.
C) only slightly smaller than with the patent.
D) zero since the monopoly would be a revenue maximizer.

Question

Quizplus · Accepted Answer

Patents provide inventors with a temporary monopoly on their inventions, incentivizing innovation by allowing inventors to recoup their investment. Without patents, many products might not be invented due to the lack of financial incentive, potentially reducing consumer surplus to zero because the product would not exist.

A Justification for Patents Is That Without Patents Consumer Surplus