Question

n the United States, companies can apply for patents, which allow them to be the market, because in this case the sole provider of certain vaccines. This is an example of company holds the rights to be the only supplier for the entire market. Therefore, it can charge as high a price

Answer 1

A patent in the United States provides an inventor with exclusive rights to make, use, or sell their invention for 20 years, encouraging firms to invest in innovation by allowing them to be the sole provider of a patented product for a set period.

Step-by-step explanation:

In the United States, intellectual property rights play a crucial role in fostering innovation and encouraging investments in research and development. A patent is a legal mechanism that gives an inventor the exclusive rights to make, use, or sell an invention for a limited time, typically 20 years in the United States. This limited-time monopoly allows a firm to earn profits above the normal rate by being the sole provider of a patented product, such as a new drug. The intention behind this system is to provide an incentive for firms to invest in new technologies and innovations that can benefit society.