Why Does a Patent Stimulate Research

question 6

Multiple Choice

Why does a patent stimulate research?

• A) Patents give firms time to do research.
• B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive.
• C) Without patents, firms would not research as much.
• D) They don't.

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Definitions:

Trade Credit

The purchase of goods from suppliers that do not demand payment immediately.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.

Reminder

A prompt or signal designed to jog someone's memory about a task, event, or other commitment, often used in personal and professional settings to ensure timely actions.

Installment Account

A financial account that allows borrowing or the purchase of goods, with repayment made in predetermined, periodic amounts over time.