The main reason why monopoly governs prescription drugs is
A. a conspiracy to get as much profit as possible.
B. to keep prices high so only the people that need them will buy them.
C. to keep prices high so only the people that need them will buy them and to motivate innovation.
D. to motivate innovation.
Answer: D
You might also like to view...
Endogenous growth theory attempts to
A) replace the Solow model with a model in which money growth plays a key role. B) explain how societies can more easily reach the "Golden Rule." C) show how population growth reduces capital and output. D) explain why productivity changes.
Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above.
Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year. What is her accounting profit?
A) $14,000 B) $21,000 C) $31,000 D) $38,000
The form of economic system in Hitler's Germany and Mussolini's Italy was called _________.
Fill in the blank(s) with the appropriate word(s).