A monopoly has produced a product with a patent for the last few years.The patent is going to expire.What will happen after the patent expires?
A) The incumbent will leave the market.
B) The incumbent will retain its status as a monopoly but produce at a lower price.
C) Some firms will enter the industry.
D) None of the preceding answers is correct.

Question

Quizplus · Accepted Answer

After the patent expires, other firms will be allowed to produce the same product, which will increase competition and potentially decrease prices. This is likely to attract new firms to enter the industry, resulting in a decrease in the incumbent's market share and potentially eliminating its status as a monopoly. The incumbent may still choose to produce at a lower price to remain competitive, but it will no longer enjoy the monopoly power it had during its patent-protected period.

A Monopoly Has Produced a Product with a Patent for the Last