Why would a government use a patent to block entry to some markets if this hinde

Question

Why would a government use a patent to block entry to some markets if this hinders competition especially when governments generally promote competition? O A. Patents are justified because they are an important means for creating network externalities. O B. Patents encourage firms to spend money on research necessary to create new products. O C. Politicians sometimes succumb to pressure from lobbyists to grant favors to businesses for political reasons. O D. Patents are an important source of government revenue.

Explanation / Answer

"B"

Patents encourage firms to spend money on the research necessary to create a new product if there is no patent on new investment in r&d will suffer and the economic growth will lag behind. patents ensure a better return for an investment.  

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