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Patents are a form of monopoly that society allows because they _____. maintain an orderly way for companies to mak What is monopolistic competition? A. one company selling the identical product under different names B. one company selling several different products under different names C. a very few companies selling identical products D. many companies selling similar but not identical productse a lot of money give companies the right to decide who will be allowed to use their products set up a situation in which only a few manufacturers can control an industry encourage firms to research and develop new products that benefit society as a whole

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Answer:

D. encourage firms to research and develop new products that benefit society as a whole.

Step-by-step explanation:

Patents are a form of monopoly that society allows because they encourage firms to research and develop new products that benefit society as a whole. By granting a patent, the government gives the inventor or company exclusive rights to their invention for a certain period of time. This means that others are prohibited from making, using, or selling the patented product without the permission of the patent holder.

The main purpose of patents is to incentivize innovation by providing inventors and companies with temporary monopoly rights. These rights allow them to recoup their investment in research and development, as well as to earn a profit from their invention. By having exclusive rights, inventors and companies can have the confidence to invest time, money, and resources into creating new and useful products.

In return for the exclusive rights, patent holders are required to disclose their invention to the public. This disclosure helps to advance the knowledge and understanding of the scientific and technological fields. It allows others to learn from the invention and build upon it, contributing to further innovation and development.

Patents also promote competition by providing a limited-time monopoly. Once the patent expires, the invention enters the public domain, allowing others to freely use and build upon it. This promotes competition and further innovation in the market.

In summary, patents are a form of monopoly that society allows because they encourage firms to research and develop new products that benefit society as a whole. They provide inventors and companies with exclusive rights to their inventions for a limited period, incentivizing innovation and promoting competition in the long run.

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