If the Price of the AIDS Drug Combivir Was Driven

question 90

Multiple Choice

If the price of the AIDS drug Combivir was driven down to marginal cost by competition:

• A) fewer people would use Combivir.
• B) there would be less incentive to invest in creating the next improved AIDS drug.
• C) deadweight loss would increase.
• D) GlaxoSmithKline's profits would increase.

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Definitions:

Autokinetic Illusion

A visual phenomenon where a stationary small point of light in a dark environment appears to move because of involuntary eye movements.

Perceptual Illusion

A misinterpretation of a real external stimulus, illustrating how perceptions can differ from reality.

Misleading Cues

Misleading cues are incorrect or deceptive clues that lead to erroneous conclusions or perceptions.

Stimuli

Environmental events or conditions that elicit responses from organisms.