When generic drugs enter the market after the patent for a brand name drug expires, the price of the brand name drug often increases. This is usually due to
A) the demand curve for the brand name drug shifting in but becoming more inelastic.
B) the demand curve for the brand name drug not shifting, but the marginal cost of producing the good increases.
C) the demand curve for the brand name drug shifting in but becoming more elastic.
D) the demand curve for the brand name drug not shifting, but loyal customers are willing to pay a higher price for the brand name drug.
A
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Compared to a perfectly competitive industry, a single-price monopoly produces
A) more output. B) less output. C) the same output. D) some amount that might be more, less, or the same depending on whether the monopoly's marginal revenue curve lies above, below, or on its demand curve. E) some amount that might be more, less, or the same depending on whether the monopoly's marginal cost curve lies above, below, or on its marginal revenue curve.
Which of the following is an important difference between government and privately-owned enterprises?
A) Government can distribute goods without employing discriminatory rationing criteria. B) Government can more easily use negative incentives to obtain resources. C) Government does not produce exchangeable commodities or services. D) Government provides services at a lower opportunity cost. E) Government tends to pay close attention to the varying preferences of the people.
If real GDP has increased, which of the following statements is always true?
A) Nominal GDP has increased. B) Output has increased. C) Prices have remained the same. D) Output might have decreased if prices have risen enough.
Economic efficiency entails
A) producing a given amount of output with the most expensive mix of inputs. B) producing a given amount of output with the least number of inputs. C) producing a given amount of output with the most inputs. D) producing a given amount of output with the cheapest mix of inputs.