Question

Why does the government issue​ patents? The government issues patents A. to prevent firms from keeping secret how a product is made. B. to ensure that new products are safe and effective for consumers. C. to encourage firms to spend money on the research and development necessary to create new products. D. to encourage competition among firms in markets with barriers to entry. E. to limit excessive economic profits in the short run before new firms have had time to enter profitable markets. How long do patents​ last? A patent is the exclusive right to a product for a period of nothing years from the date the patent is filed with the government. ​(Enter your response as an​ integer.)

Answer 1

The correct answer is "C"

Step-by-step explanation:

Research and development has positive externalizations. However, if a firm isn't empowered to put forth benefits from their attempts, the measure of innovative work in the economy would be lower. Consequently, the administration gives licenses for not many years to firms so they can take care of their R&D expenses and make a few benefits.