One Way to Measure the Gain to Consumers from a Drug

question 199

True/False

One way to measure the gain to consumers from a drug that has the potential to reduce obesity is to measure what people are willing to pay for the good and subtract the amount they have to pay.

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Definitions:

Competing Products

Goods or services offered in the market that serve similar needs or desires of consumers, often leading to a choice preference based on price, quality, or other attributes.

Technological Advance

The progress or improvement in technology, leading to more efficient processes, products, or services.

Production Process

is the series of steps or operations involved in the manufacture of goods or services.

Short-Run Adjustments

Refers to the changes firms make in response to changing market conditions in the short term when at least one production factor is fixed.