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Intellectual property laws are intended to promote innovation, but some economists, such as MiltonFriedman, have argued that such laws are not desirable. In the United States, there is no intellectual property protection for food recipes or for fashion designs. Considering the state of these two industries, and bearing in mind the discussion of the inefficiency of monopolies, can you think of any reasons why intellectual property laws might hinder innovation in some cases?
Intellectual properties is basically knowledge and the certain government regulations like patents,copyrights, trademarks, etc. gives ownership to the innovator or owner of these properties. It isvery easy to copy and idea or concept which somebody else have spent money, time and yearsto get but protecting intellectual property also leads to formation of monopoly and thesemonopolies lead to market inefficiency because the production is less than competitiveequilibrium while the price is more. Some innovations are fruitful only when maximum productionis done and, in many cases, where the production is reduced from capacity then the innovationbecomes less fruitful and further innovation decreases.
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everyone today will be walking through Problem number 28 from Chapter nine of the textbook, which asks us, in what cases would intellectual property loss hinder innovation? So if we think about this logically, if these laws are too strict or two Athenians, essentially, if they are too weak or too strong, they were definitely hinder innovation. So if they're too weak, then what would happen is that innovation would become less. I'll just give a brief example. If we had weaker pot laws in place, then people would innovate. Loss? Um, that's just a simple matter. That's one end of the spectrum. But on the other end of the spectrum, it could also be too strict, these intellectual property loss or too strong in nature to essentially forceful with how they go about things and what results from this is, examine it a little bit closer. We'll see that too strong intellectual property laws might hinder innovation because then firms just worked. He used too much innovation for only profit. So in the market are firm. Will, often with too strong intellectual property laws, used too much innovation because that's the only way that they can basically make a profit. This is only to get a profit. Really. That's their main source on leads. I mean their main source of inspiration for starting the firm's profits. So goes without saying. But I'll just buried it. We're only doing They're only having too much innovation going on for profit so they can essentially just make more money. There you have it. If intellectual property laws are too weak or too strong on both ends of the spectrum, if they're too extreme essentially than back it results in last innovation are more innovation. So they're your answer. Circled in red. If you guys enjoyed my video explanation, please hit the light. But next to it I hope you all have a nice day. And thanks for tuning in today. I
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