Granting a pharmaceutical company a patent for a new medicine will lead to i) a product that is priced higher than it would be without the exclusive rights.
Ii) incentives for pharmaceutical companies to invest in research and development.
Iii) higher quantities of output than without the patent.

Question

Quizplus · Accepted Answer

Granting a patent gives the company exclusive rights, allowing them to set higher prices (i) and provides incentives for R&D investment (ii). However, patents typically restrict output to maintain higher prices, so iii) is incorrect.

Granting a Pharmaceutical Company a Patent for a New Medicine