Name Brand Drugs Are Able to Continue Capitalizing on Their

question 221

Multiple Choice

Name brand drugs are able to continue capitalizing on their market power even after generic drugs enter the market because
(i) almost all people fear the generic drug companies are devoting too few resources to research and development.
(ii) some people fear that generic drugs are inferior.
(iii) some people are loyal to the name brand.

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

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Definitions:

Future Taxpayers

Individuals or entities that will be responsible for contributing to government revenues through taxes in the future.

Promised Benefits

The guaranteed or expected advantages or returns, often from investments, insurance policies, or employment contracts.

Real Rate

refers to the interest rate adjusted for inflation, providing a more accurate measure of the true cost of borrowing or the real yield on an investment.

Tax Rate Structure

The way in which different rates of taxation are applied to different levels of income or other bases.