Granting a pharmaceutical company a patent for a new medicine will lead to (i) a product priced higher than it would be without the exclusive rights, (ii) incentives for pharmaceutical companies to invest in research and development, and (iii) higher quantities of output than without the patent.a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)

a. (i) and (ii) only

Explanation:

(i) A pharmaceutical patent grants the company exclusive rights to sell the new medicine for a certain period, typically around 20 years. Since the company has a monopoly on the drug, they can set higher prices without immediately facing competition from generic brands, which would drive prices down.

(ii) Patents provide pharmaceutical companies with the exclusive incentives to invest in research and development. The potential for market exclusivity and high returns on successful products encourages companies to fund the costly and risky process of developing new medicines.

(iii) Patents do not necessarily lead to higher quantities of output than without the patent. While they do provide incentive for the initial development of a drug, the higher prices and lack of competition can limit the output distributed to consumers compared to what might occur in a competitive market with multiple producers, because the patented medicine's high prices can restrict its affordability and accessibility