Why Is a Patent a Government-Imposed Entry Barrier

question 130

Multiple Choice

Why is a patent a government-imposed entry barrier?

• A)it allows a firm to achieve economies of scale.
• B)it is a key input owned by the firm that is granted the patent.
• C)it limits the quantity of a good that can be imported into a country.
• D)it gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented.

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Definitions:

Quantity

The property that can exist as a magnitude or multitude, often measured and used for describing the amount of something.

Timeliness

The characteristic of being done at the right or appropriate time, often essential for efficiency and effectiveness.

Recognition

The acknowledgment or appreciation of someone's efforts, achievements, or status.

Feedback

is the information given to individuals or systems about their performance, intended to reinforce strengths or improve weaknesses.