Intellectual property a. prevents people who do not own the knowledge from using it. b. increases total surplus. c. eliminates the free rider problem. d. assigns property rights to knowledge.

Option (D) is correct.

Explanation:

Correct Option: Assigns property rights to knowledge.

Intellectual property are the rights that are assigned to a person or a company which includes the rights for using its own plans, ideas, intangible assets without any interference from others but for a limited period of time.

There certain examples of intellectual property rights are as follows:

(1) Patents

(2) Copyrights

(3) Trademarks

Explanation:

In 2022,  

Contract Price          2,245,000  

Less: Cost incurred  

2020           (256,000)  

2021        (1,580,000)  

2022          (630,000)  

Gross Margin           (145,000)