Drug companies are willing to spend millions of dollars on developing new drugs because
A.) their research will drive their competitors out of business.
B.) they can patent the new drug and have a monopoly on its production and sale.
C.) they can raise the prices on older drugs whose patents have expired.
D.)they can produce unlimited quantities of the new drug.
D.)they can produce unlimited quantities of the new drug.
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In a repeated game, punishments that result in heavy damages are an incentive for players to adopt the strategies that result in a ________ equilibrium
A) contestable B) strategic C) cooperative D) winner-share-all
In a perfectly competitive market,
A) firms can freely enter and exit. B) firms sell a differentiated product. C) transaction costs are high. D) All of the above.
Economists assume that people are motivated by
A) a desire to please others. B) the interests of the community at large. C) self-interest. D) morally correct behavior.
People might withdraw money from interest-bearing accounts,
a. making the interest rate fall, if there is a surplus in the money market. b. making the interest rate rise, if there is a surplus in the money market. c. making the interest rate fall, if there is a shortage in the money market. d. making the interest rate rise, if there is a shortage in the money market.