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Assume That a Drug Company Has Recently Developed a New

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Assume that a drug company has recently developed a new weight-loss drug that is available only by doctor's prescription.This drug has some significant side effects,but is quite effective for helping individuals lose weight.The drug is being heavily advertised directly to the public,resulting in large numbers of individuals contacting their doctors in order to get a prescription for the drug.Because of the side effects,this drug is intended only for persons who are severely overweight.Some of the advertising for this drug emphasizes the happiness and beauty that can result when one is slender,leading to many doctors over-prescribing the drug.Discuss the drug company's actions in light of the theories of the social responsibility of business.


Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a public marketplace.

Incremental Value

The additional value created by undertaking a specific action, beyond the existing value without taking that action.

Market Value

The current price at which an asset or service can be bought or sold in a particular market.

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