Sample Thesis Paper
However before the system can function it must allocate resources according to a system of private property. A system of private property decides what an individual owns and what rights he has in selling this property to other individuals. The ownership of these properties is not in the hands of the public but is rather held by those individuals who can effectively use resources to improve and care for the private property.
In the United States the physical expression of any idea can be assigned a copyright which then becomes the sole private property of the individual in question. While new expressions of existing ideas can be assigned a patent. The existence of copyrights and patents are important since they protect the financial incentives of the individual who holds the copyright. These incentives are essential for the individual or company to invest their time, money and other resources into the creation of more products the market has a demand for. It must also be considered that in a free market certain companies can meet the demands of the consumers better than other companies due to various reasons such as skill, resources, cost, etc. In this case these companies are said to have an absolute advantage. An example of this is when a company can produce a product cheaper than a competing company (Valesquez pg 142-143).