The Average Cost of Developing a New Drug and Clearing

question 20

Multiple Choice

The average cost of developing a new drug and clearing all FDA regulations to get the drug to market are about a billion dollars and are:

• A) paid by the FDA only if the drug is approved
• B) paid by the FDA only if the drug is not approved
• C) paid by the FDA whether or not the drug is approved
• D) paid by the drug companies
• E) paid by the National Institute of Health

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Definitions:

Fixed Fee

A set amount charged for a service or product, unrelated to usage or quantity.

Local Phone Service

A telecommunications service that connects calls within a specific geographic area, typically within a single city or region.

Absolute Values

A numerical value regardless of its sign, denoted as the distance of a number on the number line from zero.

Indifference Curve

A graphical representation showing combinations of two goods between which a consumer is indifferent, indicating equal levels of satisfaction.