Details: So why do governments issue patents at all? Explain, showing the contrast between the average and marginal cost curves for a firm with very high fixed costs and low marginal costs, and those assumed for the standard textbook firm. What might one predict would happen to the rate of innovation if there were no patent protection? Why? Can you interpret your prediction in terms of trade-ff between short-run and long-run allocative distortions, or short-run pain for long-run gain. Be as specific as you can about exactly what society as a whole is giving up, and getting, within the terms of this trade-off.