As a means of motivating research and development, a patent may stimul

As a means of motivating research and development, a patent may stimulate either too much or too little research, relative to the socially optimal level.

Indicate whether the statement is true or false

ANSWER

T When only a part of the consumer surplus gain may be appropriated by the discoverer, there may be too little research. When firms might gain at the expense of other sellers, even when consumers gain little, there can be too much research.