Experience with patents in the pharmaceutical industry shows that when patents on drugs expire
A) prices remain high without patent protection because of a lack of competition. Firms that are not granted patents cannot compete with firms that are granted patents.
B) other firms are free to produce chemically identical drugs. Competition reduces the profits that had been earned by the firms that received patents.
C) most patients will continue to buy the drugs from the same firms because their doctors recommend they buy brand-name drugs.
D) firms will find ways to obtain additional patent protection—often by making cosmetic changes in drugs that were patented—so that they can continue charging high prices.
B
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OPEC's incentives to produce a stream of long-term profits for its member nations means that oil stocks will
A) probably last quite a while. B) most likely run out quickly. C) not be used or needed in the near future. D) increase indefinitely.
What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?
a. diminishing marginal returns b. the law of supply c. the law of decreasing cost d. the price equalization principle
In a perfectly competitive market,
A. a firm can sell as much as it wants at the existing market price. B. the additional revenue from selling one more unit of output is less than the market price. C. a firm can attract more customers by lowering its price. D. both a and c E. both b and c
This table shows the demand and supply schedule of a good.Price of GoodQDemandQsupply$0.005025$0.504026$1.003528$1.503131$2.002835$2.502740According to the table shown, at a price of $0.50 quantity demanded:
A. exceeds quantity supplied and a shortage exists. B. is less than quantity supplied and a surplus exists. C. is less than quantity supplied and a shortage exists. D. exceeds quantity supplied and a surplus exists.