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A monopoly has produced a product with a patent for the last few yea

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A monopoly has produced a product with a patent for the
last few years. The patent is going to expire. What will
happen after the patent expires?The incumbent will retain
its status as a monopoly but produce at a lower price.The
incumbent will leave the market.None of the answers is
correct.Some firms will enter the industry.
Solution
Once the patent expires for a monopolistic company for
producing a certain product, it will result in,
d. Some firms will enter the industry.
A patent is a right given by the governement to a company
or an individual to have complete rights for a set period to
exclude others from making, using, or selling an invention.
Here according to the given condition, when the patent
expires, other firms might will enter the market producing
the same product. Hence the demand for the product will
decline and the company can no longer be a monopoly as
it will start having competitors.

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A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will happen after the patent expires?The incumbent will retain its status as a monopoly but produce at a lower price.The incumbent will leave the market.None of the answers is correct.Some firms will enter the industry. Solution Once the patent expires for a monopolistic company for producing a certain product, it will result in, d. Some firms will enter the industry. A patent is a right given by the governement to a company or an individual to have complete rights for a set period to ...
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Anonymous
Just what I was looking for! Super helpful.

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