A patent on a product gives a firm
A) protection from having the invention copied or stolen for a period of 20 years.
B) economies of scale in producing the product.
C) excessive profits in the long run.
D) the power to impose a tariff on a competing product.

Question

Quizplus · Accepted Answer

A patent gives a firm exclusive rights to produce and sell the invention for a period of 20 years, which prevents others from copying or stealing the technology. This protection can lead to increased profits for the firm, but it does not necessarily guarantee excessive profits, economies of scale, or the power to impose tariffs on competing products.

A Patent on a Product Gives a Firm