Brand Name Drugs Are Chemically Identical to Their Generic Counterparts

question 136

Multiple Choice

Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of

• A) product differentiation.
• B) perfect competition.
• C) oligopolistic behavior.
• D) price taking behavior.

---

Definitions:

Side Table

A small, usually low table designed to be placed beside a chair or sofa for convenience in reaching items or resting drinks.

Markup Percent

The percentage added to the cost price of goods to cover overhead and profit, expressed as a portion of the cost.

Meat Slicing Machine

A device used in the preparation of food to slice meat thinly and consistently.

Percent Markup

The percentage added to the cost price of goods to achieve a selling price.