Question

When a company refuses to allow other companies to produce patented technology, the consumer invariably loses. The company that holds the patent can charge exorbitant prices because there is no direct competition. When the patent expires, other companies are free to manufacture the technology and prices fall. Companies should therefore allow other manufacturers to license patented technology. The argument above presupposes which of the following?

• A. Companies cannot find legal ways to produce technology similar to patented technology
• B. Companies have an obligation to act in the best interest of the consumer.
• C. Too many patents are granted to companies that are unwilling to share them.
• D. The consumer can tell the difference between patented technology and inferior imitations.

Answer 1

The correct option is B Companies have an obligation to act in the best interest of the consumer.