Firms often use patent rights as a:

A) barrier to exit.
B) barrier to entry.
C) way to achieve perfect competition.
D) none of the above

Question

Firms often use patent rights as a: A) barrier to exit. B) barrier to entry. C) way to achieve perfect competition. D) none of the above

Tania Barbosa · Accepted Answer

Final Answer : B, Explanation :  Firms often use patent rights as a barrier to entry, preventing competitors from producing or selling similar products or technologies. This can give the patent holder a monopoly in the market and increase their market power. Patents do not serve as a barrier to exit, as they do not prevent a firm from leaving a market. They also do not contribute to achieving perfect competition, which requires a large number of small firms with no market power.

Firms often use patent rights as a:

A) barrier to exit.
B) barrier to entry.
C) way to achieve perfect competition.
D) none of the above

Definitions

Learning Objectives

Learning Objectives

Related questions

Firms often use patent rights as a:A) barrier to exit.B) barrier to entry.C) way to achieve perfect competition.D) none of the above

Definitions

Learning Objectives

Learning Objectives

Related questions

Firms often use patent rights as a:

A) barrier to exit.
B) barrier to entry.
C) way to achieve perfect competition.
D) none of the above