Protecting intellectual property rights:
A) gives no incentive to innovate.
B) encourages research and development.
C) will increase total surplus for society.
D) only benefits producers in society.

Question

Quizplus · Accepted Answer

Protecting intellectual property rights encourages research and development as it provides a legal framework for individuals and firms to profit from their innovations. This, in turn, incentivizes them to create new ideas, products, and technologies. In other words, it rewards innovation and ensures that creators can recoup the costs of their investment in R&D, leading to more innovation overall.

Protecting Intellectual Property Rights