Michael Asks You About Why Some Drugs Are Over-The-Counter and Some

question 6

Multiple Choice

Michael asks you about why some drugs are over-the-counter and some are prescription. You explain that in order for a drug to be approved for over-the-counter use the drug must:

• A) Be safe and labeled for appropriate use
• B) Have a low potential for abuse or misuse
• C) Be taken for a condition the patient can reliably self-diagnose
• D) All of the above

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Definitions:

Total Cost

The overall expenditure associated with the creation of goods or provision of services, comprising both certain and variable costs.

Marginal Cost

The additional cost incurred by producing one more unit of a product, which can vary depending on the level of production.

Average Variable Cost

The variable cost of production divided by the quantity produced, showing the cost of producing each additional unit.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production for a firm.