Experience with patents in the pharmaceutical industry shows that when patents on drugs expire
A) most patients will continue to buy the drugs from the same firms because their doctors recommend they buy brand-name drugs.
B) 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.
C) other firms are free to produce chemically identical drugs. Competition reduces the profits that had been earned by the firms that received patents.
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.
Answer: C
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Refer to Figure 3.1. If Marge and Homer both confess to the crime, what is Marge's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
The net national savings rate for the United States, compared with that of other industrial nations is
A. much higher. B. a little higher. C. lower.
How does government's power to coerce behavior tend to reduce private-sector risk?
A) By guaranteeing that the government will financially cover any losses by private-sector firms. B)By enforcing contracts and discouraging illegal behavior that threatens private property. C) By strictly regulating the allocation of most property resources in the economy. D) The coercive power of government only increases private-sector risk.
Assume that England and France each has 40 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is
A. 40 units of cheese and 20 units of wine B. 24 units of cheese and 15 units of wine C. 8 units of cheese and 10 units of wine D. 48 units of cheese and 30 units of wine