Question

U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry and create monopoly power by granting firms patents?

please the question by NOT COPING FROM ANYWHERE

Do Not Copy Please

Answer 1

Answer - It is a true fact that the antitrust laws have been framed out in order to prevent the creation of monopolies. But the monopolies are permitted in the areas of the public utilities such as water supply or any such good which is of use of public and the competition in providing such good will lead to ineffiency. The government grants the patents or the monopoly status to those goods which are either public utilities and any private hand will lead to deadweight loss or any such invention is granted a patent and hence a monopoly which is beneficial to soceity or will be in future time. This will lead to the avoidance of price war in these products unlike other markets.