Question

4 Choose a product protected by intellectual proprety rights. Discuss the advantages and disadvantages of that product being protected.

Answer 1

Any medial device or pharmaceutical which is invented recently are protected under the intellectual property right i.e. no other firm can produce them without the permission of the patent holder.

Advantage of IPR are it protects the investment that the firm has done in the product and that allows him to reap some benefit which will be used in other inventions. it makes the economy much more dynamic.

Disadvantage is that providing an IPR gives them a monopoly and that increase the price of the good that decrease the consumer surplus and increase the producer's at the cost of the consumers.