Drug companies are allowed to be monopolists in the drugs they discover in order to a allow drug companies to charge a price that is equal to their marginal cost

Economics Jan 16, 2021

Drug companies are allowed to be monopolists in the drugs they discover in order to a allow drug companies to charge a price that is equal to their marginal cost. b. discourage new firms from entering the drug market. c. allow the government to earn patent revenue. d. None of the above is correct.

Expert Solution

Answer

Option d

None of the above

the monopolies are allowed for the life of the patent to encourage research in the area ad discover the new drugs in the market so the discovery will get the premium benefit of it.

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