A Large Pharmaceutical Company Decides to Reduce the Price of a Medication

question 91

Multiple Choice

A large pharmaceutical company decides to reduce the price of a medication to encourage physicians to continue prescribing it as generic brands have entered the market. According to the five forces model, which competitive force is the company addressing?

• A)low industry rivalry
• B)high brand loyalty
• C)power of large customers
• D)threat of substitute products
• E)power of large suppliers

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Definitions:

Tradable Pollution Rights

A system that allows companies or countries to buy and sell allowances to emit a certain amount of pollution, aimed at reducing overall emissions.

Gap Between the Rich

Refers to the widening economic disparity between those with the most wealth and those with the least within a society or globally.

Poor

Lacking in material possessions or financial wealth, often leading to difficulty in achieving a standard of living considered comfortable or normal in a society.

Since 1960

Referencing a period beginning in the year 1960 to the present or a specified end point, often used to indicate the duration of a particular trend or changes over time.