Question

Knowledge that gives a producer an economic advantage over other producers is called a _____.

Answer 1

The correct answer is: "patent or intellectual right".

A patent is a type of intellectual property. It gives its owner the right to exploit a certain knowlege by using, manufacturing and selling an invention during a certain period of time. Such period of exclusivity is granted to the creators of such inventions, so that they can earn important economic profits from it, as the retribution for the research and development procedures undertaken and paid until it the invention has been sucessfully obtained.

The time limit is established so that, when it expires, others can profit from the invention and technological progress can spread to the whole industry/economy, enhacing overall productivity and competitiveness.