What are the benefits and costs to Indian citizens of allowing Indian companies to copy and sell patent-protected drugs developed by U.S. companies?
What will be an ideal response?
Indian citizens benefit from the added competition in the form of lower drug prices. The weak patent protections, however, discourage research and development. The lack of incentives to do research and development generates a lack of innovation and Indian authorities have recently moved to strengthen its patent protections. Stricter laws will provide the financial incentives necessary for innovative products to surface but will eventually hurt Indian citizens who benefit from the current low prices of drugs.
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Scarcity of resources implies that people must make decisions consistent with the means they have available to them.
Answer the following statement true (T) or false (F)
In long-run equilibrium, a profit-maximizing firm in a monopolistically competitive industry will produce the quantity of output where
A. ATC < P, MR = MC = P. B. ATC = P, MR = MC < P. C. ATC < P, MR + MC < P. D. ATC = P, MR = MC = P.
In the horizontal segment of the aggregate supply curve, when GDP:
A. increases, the price level rises. B. decreases, the price level falls. C. increases, the price level does not change. D. increases, the price level falls.
You enter a classroom, which is littered with newspapers. This is because
A) students are too lazy to clean up. B) maintenance people only clean once a day. C) it is a way to protest against the tuition rates. D) students do not pay for littering.