Ordinarily, Governments Attempt to Promote Competition in Markets

question 104

Multiple Choice

Ordinarily, governments attempt to promote competition in markets.Why do governments use patents to block entry into some markets when this prohibits competition?

• A)Patents encourage firms to spend money on research necessary to create new products.
• B)Politicians sometimes succumb to pressure from lobbyists to grant favours to businesses for political reasons.
• C)Patents are an important source of government revenue.
• D)Patents are justified because they are an important means for creating network externalities.

---

Definitions:

Interstellar Clouds

Large accumulations of gas, dust, and plasma in space, often serving as the birthplaces of stars.

Organic Compounds

Chemical compounds made up of carbon atoms bonded with other elements and primarily found in living systems.

Organic Subunits

Basic building blocks of organic molecules, which include structures like amino acids, nucleotides, and monosaccharides.

Protocells

Early, simple, cell-like structures that are considered precursors to true cells, playing a role in theories of the origin of life.