Which of the Following Most Directly Explains Why Pharmaceutical Giant

question 31

Multiple Choice

Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each a month?

• A)The profit motive since aging baby boomers are a highly significant market
• B)The social responsibility concept
• C)The necessity of matching competitors' actions
• D)New regulatory Medicare mandates
• E)Increased influence of religious leaders in political affairs

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Definitions:

Independently Acting Buyers

are consumers who make purchasing decisions based on their own preferences and circumstances, without coordinating with others.

Freedom to Enter

The condition in a market where new firms can enter the industry without facing prohibitive barriers or regulations.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing between options.

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good or service, the additional satisfaction gained from each additional unit decreases.