Why does the government allow some markets to be monopolized by granting patents?
A) to promote a more equal distribution of income
B) to correct for negative externalities
C) to promote technological progress
D) to ensure lower prices for consumers in the short run

Question

Quizplus · Accepted Answer

The government grants patents to promote technological progress by incentivizing innovation and research. Patents give inventors and companies the exclusive right to produce and distribute their products for a limited time, allowing them to recoup their investment and profit from their innovative ideas. This encourages a competitive marketplace, as companies must continuously innovate in order to maintain their market position once the patent expires. The goal is to encourage the development of new products and technologies that benefit society as a whole.

Why Does the Government Allow Some Markets to Be Monopolized