As the Result of a Patent, Only One Company Produces

question 81

Essay

As the result of a patent, only one company produces the drug Zoloft. This company was accused of abusing its market power: using its position as the sole producer of the drug to act as a monopolist and charge very high prices. A Competition Bureau economist estimates that the price elasticity of demand for Zoloft at its current price is - 0.5. Does this evidence support or contradict the contention that the firm is a profit- maximizing monopoly? Why or why not?

Grasp the importance of the fusiform face area in facial processing and its response to emotional expressions.

Recognize how the human brain interprets emotions and expressions and the underlying neural mechanisms.

Understand how Internal Rate of Return (IRR) and required return influence project acceptance.

Know the application and limitations of the payback period in evaluating projects.