Which of the Following Most Directly Explains Why Pharmaceutical Giant

question 201

Multiple Choice

Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?

• A)the profit motive since aging baby boomers are a large,profitable market
• B)the social responsibility concept
• C)the necessity of matching competitors' actions
• D)new regulatory Medicare mandates as a result of the Affordable Care Act
• E)the mandate by its industry's code of ethics

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than another.

Competitive World Market

A global economic environment where businesses compete across borders to offer the best products and services.

Trade Restrictions

Measures imposed by governments to control or limit the exchange of goods and services across their borders, including tariffs, quotas, and embargoes.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade.