Which of the following statements is true of patents?
A)Patents should be granted for such inventions which cannot be immediately imitated.
B)The cost of granting patents to private firms is more than the benefit,if the goods produced by them are characterized by nonexclusion.
C)In the absence of patents the amount of new knowledge produced will not be socially optimal.
D)A patent grants permanent monopoly power to an inventor.

Question

Quizplus · Accepted Answer

It is true that in the absence of patents, the amount of new knowledge produced will not be socially optimal. Patents provide an incentive for inventors to share their knowledge with the public, which ultimately benefits society as a whole by encouraging innovation and promoting economic growth. Choices A, B, and D are not true statements about patents. Patents are granted for a limited period of time, not permanently, and the cost of granting patents to private firms can be outweighed by the benefits of promoting innovation and competition.

Which of the Following Statements Is True of Patents