Recall the Application ʺMerck and Pfizer Go Generic?ʺ Which of the Following

question 219

Multiple Choice

Recall the Application ʺMerck and Pfizer Go Generic?ʺ Which of the following best represents the way Merck responded to the increased competition?

• A)Merck aggressively raised its prices for generics.
• B)Merck used the entry deterrence of undercutting prices of its generics.
• C)Merck used the entry deterrence of overpricing its branded drugs.
• D)Merck lobbied the government to extend the patents.

---

Definitions:

GDP Deflator

A metric that tracks the price points of all newly produced domestic final goods and services, aimed at transforming nominal GDP into real GDP.

Per Capita Real GDP

A measure of the average economic output per person, adjusted for inflation, in a specific area.

Population

Population refers to the total number of people living in a particular area or country at a specific time.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, essentially adjusting for inflation and allowing for comparisons across time periods by reflecting the prices of all goods and services produced domestically.