Economics JAMB

Patents and copyrights enable monopolists to?

A. determine the quality of their products
B. determine the scale of their products
C. restrict information flow to new firms
D. restrict the entry of new firms

Correct Answer:

Option B – determine the scale of their products

Explanation

Patents are used to prevent others from making or selling an invention, for example, computers, phones, etc. while Copyright is the exclusive right that the owner of intellectual property has. It protects the creator’s work from unauthorized duplication or use. Example music and movie production.

In a monopolistic setting, it is used to determine the size or extent of producing a particular product. This is to prevent other market players from making or producing the product without permission.

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