A Manufacturer and Marketer of Prescription Pharmaceuticals Decided to Raise

question 63

Multiple Choice

A manufacturer and marketer of prescription pharmaceuticals decided to raise the price of its anti-malaria drug from $15.00 per dose to $750.00 per dose,a price increase of 5,000 percent.Following a public outcry,the CEO was forced to resign,the company was forced to retract the price hike,and the company's stock price sharply declined.Which of the following has the company incurred?

• A)Internal administrative costs but not visible costs
• B)Only visible and internal administrative costs
• C)Visible and intangible costs
• D)Internal administrative costs but not intangible costs
• E)Only intangible costs

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Definitions:

Symbolic Ties

Relationships or connections that are not based on formal agreements but rather on shared values, trust, or identity.

Board of Advisors

A group of external experts who provide strategic advice to the management of a company, but who do not have any governance authority.

Personal Liability

The legal responsibility of an individual to repay debt or answer for other obligations out of their personal assets, not just the assets of their business or investment.

Network Density

The measure of how closely knit a network is, indicating the extent of connections or interactions among its members.