Which of the following statements is correct? Once a patent expires:
I. monopoly profits increase.
II. deadweight loss is eliminated.
III. generic equivalents appear quickly.
A) I and III only
B) III only
C) II and III only
D) I and II only

Question

Quizplus · Accepted Answer

Once a patent expires, generic equivalents can enter the market quickly, increasing competition and reducing prices, which eliminates the deadweight loss associated with monopoly pricing.

Which of the Following Statements Is Correct? Once a Patent