What Happens to the Price and Quantity Sold of a Drug

question 282

Multiple Choice

What happens to the price and quantity sold of a drug when its patent runs out? (i) The price will fall.
(ii) The quantity sold will fall.
(iii) The marginal cost of producing the drug will rise.

• A)(i) only
• B)(i) and (ii)
• C)(ii) and (iii)
• D)(i), (ii), and (iii)

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Definitions:

Total Cost

The complete cost of producing or purchasing goods, encompassing both fixed and variable expenses.

Centre of Gravity

A method used in logistics and supply chain management to find the optimal location of a facility based on minimizing transportation costs.

School District

An organizational entity within a specific geographical area that operates and manages public schools.