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Question from Macroeconomics. 6-7 sentences will be enough. Should drug companies be forced to make HIV/AIDS...

Question from Macroeconomics. 6-7 sentences will be enough.

Should drug companies be forced to make HIV/AIDS drugs available to poor people at a low cost?

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Answer #1

The drug companies are part of the oligopolistic market. These companies invest in research and development to produce new drugs for chronic diseases such as HIV/AIDS. Once the drug is created it acquires a patent and has monopoly powers over the market. Forcing these companies to make drugs available a lower cost will decrease the profit of these companies. They will not invest large sums of money in research and development of new drugs. Thus, this will be a bad policy to force. Rather the government can buy the patent from these companies and in turn make these firms to sell the drug at lower prices in low cost med store.

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