Why Do Some Firms Choose Not to File for a Patent

question 32

Multiple Choice

Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?

• A)because firms must disclose information about the product or process being patented in a patent application
• B)because trade secrets are never divulged
• C)because a patent only gives the inventor exclusive rights to a product or process for 5 years
• D)because trade secrets provide the same exclusive legal rights to a product as a patent does

---

Definitions:

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers, typically downward-sloping, indicating an inverse relationship.

Marginal Revenue

The additional income that a company generates from selling one more unit of a good or service.

Pure Monopolist

A market participant that is the sole supplier of a unique product without close substitutes, possessing significant control over market prices.