Research has shown that most economic profits from selling a prescription drug are eliminated 20 years after the drug is first offered for sale. The main reason for the elimination of profits is
A) firms sell their patent rights to other firms so that they can concentrate on finding drugs to treat new illnesses.
B) after 20 years patent protection is ended and other firms can produce less-expensive generic versions of the drug.
C) the quantity demanded of the drug has increased enough that the demand becomes inelastic and revenue falls.
D) after 20 years most people who have taken the drug have passed away or are cured of the illness the drug was intended to treat.
B
You might also like to view...
"Crowding in" refers to federal government deficits:
a. used for public infrastructure that will offset any decline in business investment. b. which reduce private business and consumption spending. c. which reduce future rates of economic growth. d. all of these.
Assets that are used for money that have intrinsic value generally keep:
A. a less steady value than those that don't. B. just as steady a value as those that don't. C. a more steady value than those that don't. D. a value that is not comparable to other assets.
The Honolulu tourism commission proposed a 6 percent tax on hotel rooms to pay for an outdoor amphitheater. A Purdue University economist estimates that the tax would result in a 6 percent increase in the price of hotel rooms. If the elasticity of demand is 1.33, what is the expected change in quantity demanded?
A. 12.5 percent B. ?8 percent C. 8 percent D. ?12.5 percent
A number of semi-skilled workers in an industry find themselves out of work when improvements in technology render their jobs obsolete. These workers experience
A. transitional unemployment. B. technological unemployment. C. structural unemployment. D. frictional unemployment.