Health Resources Corporation Makes and Sells Intake,the Most Prescribed Name-Brand

question 30

Multiple Choice

Health Resources Corporation makes and sells Intake,the most prescribed name-brand cholesterol-lowering medication.Jenerica Company has the potential to make a generic version of the same drug.Health Resources pays Jenerica not to sell its product.This is

• A)a customer restriction.
• B)a joint venture.
• C)an exclusive-dealing contract.
• D)a price-fixing agreement.

---

Definitions:

Table: Price Elasticity

A tabulated representation that shows how the quantity demanded of a good or service responds to changes in its price, indicating the sensitivity of consumers to price changes.

Midpoint Formula

A method used in economics and mathematics to calculate the average of two points on a line, often employed to find the elasticity of demand.

Chocolate-Covered Peanuts

Peanuts that have been coated in chocolate, serving as a sweet and crunchy snack.

Total Revenue

The total value of sales of a good or service (the price of the good or service multiplied by the quantity sold).