Currently, It Is Illegal to Import Prescription Drugs into the United

question 204

Multiple Choice

Currently, it is illegal to import prescription drugs into the United States despite the fact that U.S. consumers could buy drugs from Canada at lower prices than those available in the United States. What set of cost curves is most consistent with the price difference between the United States and Canada?

• A) Producing a drug has a high and constant marginal cost.
• B) Producing a drug has a high fixed cost with a relatively low marginal cost.
• C) Producing a drug has a low fixed cost with a relatively high marginal cost.
• D) Producing a drug has a low fixed cost and a rising marginal cost.

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Definitions:

Biological Influences

Factors related to genetics, anatomy, and physiology that affect human behavior and characteristics.

Social Cognition

Refers to the processes involved in understanding, interpreting, and responding to the social world.

Economic Behavior

The study of how individuals, businesses, and governments make decisions about allocating resources to satisfy their needs and desires.

Psychoanalytic Theory

A theory of human psychology that posits unconscious motives and childhood experiences are central to personality development and behavior.