Piracy of intellectual property, such as music, videos, and software : A. may or may not affect social welfare in the short run but increases innovation in the long-run. B. reduces social welfare. C. may or may not affect social welfare in the short run but reduces innovation in the long-run. D. increases social welfare. E. reduces social welfare in the short run but stimulates innovation in the long-run.

Question

Business

Amelie

2 December, 09:30

Piracy of intellectual property, such as music, videos, and software : A. may or may not affect social welfare in the short run but increases innovation in the long-run. B. reduces social welfare. C. may or may not affect social welfare in the short run but reduces innovation in the long-run. D. increases social welfare. E. reduces social welfare in the short run but stimulates innovation in the long-run.

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Answers (1)

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Johanna Bailey · Answer 1

The correct answer is the option C: may or may not affect social welfare in the short run but increases innovation in the long run.

Explanation:

On the one hand, piracy of intellectual property is consider to be one of the main problems nowadays regarding the area of music, movies and more due to the wide range that it has to reach people everywhere with just a click on the internet. Therefore that this concept at the short run may or may not affect social welfare regarding those that are affected such as the musicians or those that are benefit such as the common people, while in the other hand at the long run it increases the innovation due to the fact that the FBI agents and the affected people try their best in order to eliminate the piracy by creating new ways of dealing with it.