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The Biotechnology Industry Is Seeing a Broad Pattern of Disintegration

question 13

Multiple Choice

The biotechnology industry is seeing a broad pattern of disintegration due to the fact that big pharma companies are less and less doing which of the following core functions?


Definitions:

Consumer Surplus

The differential in the total price consumers are interested and capable of paying for a product or service and the actual price paid.

Producer Surplus

The gap between the price sellers are ready to accept for a good and the actual price obtained.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved, leading to an underproduction or overproduction of that good or service.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium outcome is not achieved or when the market does not allocate resources at the optimal point.

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