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Form of intellectual property protections

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We discussed the concept of dead-weight-loss arising from a firm monopolizing the market. However, government often grants monopolies in form of Intellectual Property protections and often in such critical areas as pharmaceuticals. Why does government do that? Is this ethical? Is it optimal? If not, what would be a better way, and what are some pitfalls of that approach?

Reference no: EM132653767

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