WAEC SSCE - Economics - 2007 (Objective)

Question 1 Report

Patents are examples of

natural barriers to entry

legal barriers to entry

illegal barriers to entry

unnatural barriers to entry

Answer Details

Patents are examples of legal barriers to entry. A patent is a legal right granted to an inventor or assignee that gives them exclusive rights to make, use and sell their invention for a certain period of time, usually 20 years from the date of filing. By having a patent, the inventor can prevent others from making, using or selling their invention without their permission, which can create a legal barrier to entry for potential competitors. This means that the inventor has a temporary monopoly on their invention and can potentially earn higher profits. Overall, patents are a way to encourage innovation by protecting the rights of inventors and providing them with the potential to earn returns on their investment. They also serve as a legal barrier to entry, limiting competition and potentially allowing the inventor to establish a dominant position in the market.






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