In a Country That Does Not Protect Patents,what Impact Would

question 20

Multiple Choice

In a country that does not protect patents,what impact would you expect to see on the amount of research and development?

• A)There would be more, because companies are civic-minded and highly motivated to introduce innovations that improve the standard of living.
• B)There would be less, because the benefits to society of engaging in research and development would be less than the costs to society.
• C)There would be less, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts.
• D)There would be more, because they could still hope to monopolize the market.

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Definitions:

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Risk-averse

Describes an individual's preference for certainty or guaranteed outcomes over uncertainty or potential losses.

Marginal Utility

The additional satisfaction a consumer gains from consuming one more unit of a good or service.

Income

The money received, especially on a regular basis, for work or through investments.