After the Patent Runs Out on a Brand Name Drug,generic

question 91

Multiple Choice

After the patent runs out on a brand name drug,generic drugs,which have the same effect as the branded drug,enter the market.Because of this

• A)the price increases and total surplus decreases.
• B)the price decreases and total surplus decreases.
• C)the price decreases and total surplus increases.
• D)the price increases and total surplus increases.

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Definitions:

Industry Safety Regulations

Rules and guidelines established by authorities aimed at ensuring the health and safety of employees within specific sectors.

Production Schedule

A production schedule outlines the timeline, processes, and resources required to manufacture goods or deliver services within a specific period.

Production Function

A mathematical model that describes the relationship between the inputs used in production and the output of goods or services that results from those inputs.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in equipment, machinery, and processes.