33
The economics of patents.
MR
$/Q
Q/t
D=AR
MC
Q
c
Q
m
P
c
P
m
CS
PS
DWL
w
But DWL (area
DBC) is the price
of creating an
incentive to
innovate.
A
B
C
D
I
J
L
K
w
Consumers still
benefit by P
m
AB.
