The Figure Given Below Shows the Aggregate Demand and Supply

question 73

Multiple Choice

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-When Glaxo-Wellcome introduced AZT, an AIDS drug, it was able to enjoy high profits because:

• A)the drug was highly recommended by doctors.
• B)of the quick response of rivals in introducing substitute drugs.
• C)of barriers to entry provided by patents.
• D)of its competitive price in the pharmaceutical industry.
• E)it experienced constant returns to scale in the long run.

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Definitions:

Modifies Action

An adjustment or change in behavior or approach to achieve a desired outcome more effectively.

Synergistic Effect

The interaction of multiple elements that produces a total effect greater than the sum of individual effects.

Toxic Effects

The harmful and potentially dangerous side effects caused by substances, chemicals, or medications when ingested, inhaled, or absorbed.