That U.S. drug companies can sell their drugs in Canada and Mexico for much less than they sell them for in the U.S. suggests that the
A. marginal cost of producing the drugs is higher than even the U.S. price.
B. marginal cost of producing the drugs is less than the Canadian and Mexican price.
C. drugs sell for less than their marginal cost in Canada and Mexico.
D. marginal cost of producing the drugs is between the U.S. price and the Canadian price (so on average the company is making a profit).
Answer: B
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