The economic efficiency argument for patents is to:
A)ensure the profitability of firms with patent protection.
B)enable people and firms to internalize the external benefits of their inventions.
C)raise sufficient revenue for the firms so that they can at least break even.
D)ensure that the benefits of discoveries and inventions are entirely transferred to society at-large.

Question

Quizplus · Accepted Answer

The economic efficiency argument for patents is that they enable people and firms to internalize the external benefits of their inventions. This means that since the patent holder has exclusive rights to their invention, they are able to profit from it and receive a return on their investment in developing the invention. This incentivizes inventors to continue inventing and contributing to society's overall productivity and economic growth.

The Economic Efficiency Argument for Patents Is To