Examlex

Solved

​Generic Drug Industry Dynamics

question 53

Essay

​Generic Drug Industry Dynamics
When a brand name drug's patent protection expires,many generic producers are usually ready to enter the market.These firms' products are close substitutes,they have similar production technologies,the regulatory hurdles to enter are not so great,and,within a few months,there are plenty of rivals.What would you predict for the profitability during these first few months after generic drug entry?


Definitions:

Less Elastic

Describes a demand or supply that shows a relatively smaller response to changes in price compared to others, usually implying a steeper demand/supply curve.

Superior Craftsmanship

refers to the high level of skill and quality in creating or repairing things, especially when the work is done with care and precision.

More Elastic

Describes a situation where the demand for a product or service is highly sensitive to changes in price or other factors, leading to significant variations in demand.

Price Sensitive

Refers to consumers' responsiveness or reaction to changes in the price of goods or services.

Related Questions