Why does the government grant patents to some firms that develop new products?
A. to increase the number of monopolies in the economy
B. to guarantee additional profits to large firms that pay high taxes
C. to generate competition in industries that might otherwise become monopolies
D. to encourage firms to research new products that may benefit society
1 answer
The best answer is:
D. to encourage firms to research new products that may benefit society.
Patents are granted to incentivize innovation and ensure that firms can protect their investments in new technologies, ultimately benefiting society as a whole.
