Why Do Governments Issue Patents

question 28

Multiple Choice

Why do governments issue patents?

• A) Patents foster economies of scale.
• B) Inventors have a moral right to control their inventions.
• C) Patents ensure that socially beneficial goods are affordable.
• D) Firms benefit from the publicity associated with patents.
• E) The prospect of large profits is an incentive to innovation.

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Definitions:

Supplier Obligations

Legal or contractual responsibilities that a supplier must fulfill in relation to the delivery of goods or services.

Contract

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement or service.

Outsourcing Decisions

The process of deciding to obtain goods or services from external sources rather than internally to reduce costs, improve efficiency, or gain expertise.

Credit Check

An evaluation of an individual's or company's creditworthiness, often conducted by lenders before loan approval.