In General,the Margin of Safety for OTC Drugs __________

question 14

Multiple Choice

In general,the margin of safety for OTC drugs __________.

• A)is higher than for prescription drugs
• B)is lower than for prescription drugs
• C)needs to be,by law,equivalent to that of prescription drugs
• D)may be higher or lower than for prescription drugs,depending upon the degree of access to the product

Assess the role of marginal revenue and marginal cost in determining profit-maximizing output levels.

Understand the conditions leading to long-run equilibrium in monopolistically competitive markets.

Distinguish among short-run profits, losses, and break-even points for firms in different market conditions.

Recognize changes in productive capacity and the introduction of new products as factors affecting monopolistic competition.