A Pharmaceutical Company Spends Large Amounts of Money in Developing

question 28

Multiple Choice

A pharmaceutical company spends large amounts of money in developing new prescription drugs. Once the new drug is approved for use,it frequently can be produced and marketed for considerably less money than it took to develop,so the profit margins are large if one considers only the money spent during production and marketing. This situation represents the idea of

• A) external strategies.
• B) scalable business model.
• C) managerial capacity.
• D) geographical expansion.
• E) new resource skills.

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.

Placebo

An inert or innocuous substance given to a patient instead of genuine medication, used in studies to evaluate the efficacy of treatments.

Confederate

An individual who is part of an experiment but pretends to be a participant and is aware of the study's aims.

Experimental

Pertaining to a methodological approach that involves manipulating one variable to determine if changes in one variable cause changes in another variable.