The Case in Point on Competition in the Market for Generic

question 162

Multiple Choice

The Case in Point on Competition in the Market for Generic Prescription Drugs suggests that:

• A) there is little if any price difference between branded prescription drugs and generic prescription drugs because of imperfect information.
• B) there is little if any price difference between branded prescription drugs and generic prescription drugs because the goods are essentially identical and the firms are price takers.
• C) branded prescription drugs are less expensive than their generic counterparts because of economies of scale.
• D) generic prescription drugs are less expensive than their branded counterparts because of the ease of entry into the market.

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Definitions:

Mitral Valve

A valve in the heart that lies between the left atrium and left ventricle, controlling blood flow.

R00.0

Tachycardia, unspecified; a code representing abnormally rapid heart rate.

Ventricular Septal Defect

A heart defect due to an abnormal connection between the lower chambers of the heart (ventricles), leading to blood flow between them.

Q21.0

A code in the International Classification of Diseases, specifically denoting certain congenital malformations of the cardiac septa.