Explore BrainMass
Share

Explore BrainMass

    Patents: Why Does the Government Grant Monopoly Power?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why does the government create monopoly power via its patent system, when elsewhere it spends millions trying to prevent the emergence of or regulate monopoly power?

    (Answer provided in approximately 100 words, with an example.)

    © BrainMass Inc. brainmass.com October 10, 2019, 5:31 am ad1c9bdddf
    https://brainmass.com/economics/monopolies/patents-why-does-the-government-grant-monopoly-power-508041

    Solution Preview

    The government's objective is to create an incentive for firms to develop products that require a large capital investment. A typical example is prescription drugs. Pharmaceutical companies can invest up to ten years ...

    Solution Summary

    This solution explains why the government grants monopoly power via its patent system. The answer is given in paragraph form and provides a real-world example.

    $2.19