JAMB - Economics (2012 - No. 19)
Patents and copyrights enable monopolists to
determine the quality of their products
determine the scale of their products
restrict information flow to new firms
restrict entry of new firms
Uitleg
Patents are used to prevent others from making or selling an invention, example computers, phones etc. while Copyright is the exclusive right that the owner of an intellectual property has. It protects the creator's work from unauthorized duplication or use. Example music and movies production.
In a monopolistic setting, it is used to determine the size or extent of a producing a particular product. This is to prevent other market players from making or producing the product without permission.