Recall the Application About Allegations That the Makers of Branded

question 5

Multiple Choice

Recall the Application about allegations that the makers of branded drugs made deals with generic drug makers once the patents expired on branded drugs to answer the following question(s) .
-Recall the Application.Why would a company owning a drug patent that is about to expire pay a competitor $60 million to NOT produce a comparable drug?

• A) They claim their patented drug is a superior product.
• B) They want to avoid losing profits.
• C) They want consumers to have some alternatives.
• D) No company would ever spend money in that manner.

---

Definitions:

Confirmation Bias

The inclination to seek out, understand, prefer, and remember details in a manner that validates one's existing opinions or theories.

Sunk Cost Effect

The phenomenon where a person continues an endeavor because of previously invested resources (time, money, or effort), despite potential losses.

Availability Heuristic

The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.