Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 11, Problem 2.1CE
To determine
To describe: Observation of many generic sellers such as private label drug store chains.
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Discuss the forms of barriers to entry in the pharmaceutical industry.
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Give four factors that led to the development of pharmaceutical industry in china
Chapter 11 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- How does monopoly effect the pharmaceutical industry?arrow_forwardThe New York Times has stated that Mylan, the company that makes the now infamous Epipen, has become “the poster boy for out of control drug prices.” Why did this Pittsburgh-based company raise prices so much that Americans pay three times as much as Canadians for the same drug? Do you think patents are good for society?arrow_forwardSelect the correct one : Do both state and federal law protect aganist trademark dilution? A) Only some states have trademark dilution laws, but there is no federal law. B) There is a federal law, but no state law. C) Both federal law and some states have trademark dilution laws. D) Every state has a law against trademark dilution, but there is no federal law. E) Every state has a law against trademark dilution and there is a federal law .arrow_forward
- In generic drug pricing what is the impact competitors and additional factors have on the results of the generic drug pricing strategies?arrow_forwardMonopolistic competition refers to a market where many firms sell differentiated products. Differentiated products can arise from characteristics of the good or service, location from which the product is sold, intangible aspects of the product, and perceptions of the product. Think about a small business you might enjoy opening. Typical examples might be a restaurant, specialty clothing store, or professional service. Assume that it will be in a monopolistically competitive market structure. How will you specifically differentiate your product from others in the market?arrow_forwardWhat economic formula or graph does the Anti-Trust Department follow before they decide to break up a monopoly? Multiple Choice They look to see if MC=MR is beyond $10 billion. They try to calculate if price elasticity is less than .25 and inelastic. They do not use any commonly known formulas or graphs. Often times it is based on normative economics and/or it could be politically motivated. The number of registered consumer complaints must be beyond 10,000.arrow_forward
- If patents reduce competition, why does the federal government grant them? The federal government grants patents A. to increase the number of close substitutes available. B. to prevent network externalities. C. to create natural monopolies. D. to encourage firms to collude. E. to encourage firms to spend money on research to create new products.arrow_forwardWhen generic versions enter the market after the patent on a branded drug has expired The branded drug increases market share and price The branded drug increases market share and decreases price The branded drug decreases market share and increases price The branded drug decreases market share and decreases pricearrow_forwardWhat is meant by the term “market power”? Can a monopolist charge any price it wants because it is the only seller? What is the profit maximizing /loss minimizing rule a firm should follow regardless of the market structure within which the firm is operating? If the monopolist is incurring a short run economic loss, what are some options the monopolist has?arrow_forward
- In the industry structure there are no barriers to entry for new firms.arrow_forwardDoes a monopolistic competitor produce too much or too little output compared to the most efficientlevel ? What practical considerations make it difficult for policymakers to solve this problem?arrow_forwardEvaluate the impact competitors and additional economic factors have on the results of the generic drug pricing strategies. What factors contribute to the advantages and disadvantages of various pricing strategies?arrow_forward
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