Due to the Nature of the Patent Laws on Pharmaceuticals,what

question 184

Multiple Choice

Due to the nature of the patent laws on pharmaceuticals,what happens to the market for such drugs

• A)It remains a competitive market indefinitely.
• B)It remains a monopolistic market indefinitely.
• C)It switches from competitive to monopolistic once the firm's patent runs out.
• D)It switches from monopolistic to competitive once the firm's patent runs out.

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Definitions:

Import Tariff

A tax imposed by a government on goods imported from other countries, often to protect domestic industries.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, due to higher market prices.

Consumer Surplus

The contrast between the total price consumers are prepared to pay for a good or service and what they end up paying in reality.

Consumer Surplus

The contrast between the total sum consumers are ready and financially equipped to spend on a good or service, and the sum they actually spend.