Patents and copyrights can
A) create strong incentives to develop new medicines.
B) provide heavy competition in markets.
C) never lead to deadweight loss.
D) assure firms that their products will make a profit.
E) be considered natural barriers.

Question

Quizplus · Accepted Answer

Patents and copyrights grant exclusive rights to the creators of new products or ideas, which can encourage innovation and provide a financial incentive for further development. In the context of pharmaceuticals, patents are especially important for encouraging companies to invest in the long and often expensive process of developing new drugs.

Patents and Copyrights Can