Generic Drug Industry Dynamics When a brand name drug's patent protection expires, many generic producers are usually ready to enter the market. These firms' products are close substitutes, they have similar production technologies, the regulatory
hurdles to enter are not so great, and, within a few months, there are plenty of rivals. What would you predict for the profitability during these first few months after generic drug entry?
These conditions describe an industry that will become close to the ideal of perfect competition. The initial generic drug entrant will be able to set prices well above marginal cost until a second entrant emerges and thus earn substantial profits. As more competitors enter, the prices they can charge fall until, with enough entry, prices are close to marginal costs and little, if any, profits are earned.
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When detailing the impact of monetary policy, a Keynesian econometric model is likely to emphasize the link between
A) interest rates and investment. B) the money supply and inflation. C) velocity and economic growth. D) aggregate supply and the money supply.
________: the rate of exchange of pairs of consumption goods or services to leave utility or satisfaction unchanged
Fill in the blank(s) with correct word
Explain why inflation is a way for governments to default on a portion of the debts they owe.
What will be an ideal response?
A citizen of Mexico who has lived in El Paso, New Mexico, during the past three years has just sent $100 to relatives in Mexico for Christmas. This transaction is
A. counted in the U.S. balance of payments as an export item. B. counted in the U.S. balance of payments as a surplus item. C. counted in the U.S. balance of payments as a current account item. D. none of these.