Pharmaceutical companies receive patents as an exclusive right to produce a drug. This results in
a. normal profits on the patented drug.
b. monopoly status in the production of the drug.
c. lower prices for patients requiring the drug.
d. orphan drug status.
e. fewer new chemical compounds discovered.
B
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Inflation is a measure of the ________ of prices; the CPI is a measure of the ________ of prices.
A. current level; rate of change in the level B. index; base year's level C. base year's level; index D. rate of change in the level; current level
Suppose firms in a monopolistically competitive industry are currently earning short-run economic profit. In the long run, the demand curve facing each individual firm is likely to:
a. shift to the left and become flatter. b. shift to the left and become steeper. c. shift to the right and become flatter. d. shift to the right and become steeper. e. remain unchanged.
In the above figure, the initial supply of loanable funds curve is SLF0 and the initial demand for loanable funds curve is DLF0. An economic expansion that raises disposable income and the expected profit would
A) only shift the supply of loanable funds curve rightward to a curve such as SLF1. B) shift the supply of loanable funds curve rightward to a curve such as SLF1, and shift the demand for loanable funds curve rightward to a curve such as DLF1. C) only shift the demand for loanable funds curve rightward to a curve such as DLF1. D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
What are the characteristics of perfect competition?
What will be an ideal response?