Question

Prescription drug prices in the United States are often three to four times higher than in Canada, the United Kingdom, and India. Today, pharmacies in these countries fill millions of low-cost prescriptions through the mail to U.S. citizens. Given that the pharmaceutical industry cannot prevent the resale of these drugs, are the industry's efforts to price discriminate useless?

A. No, because most people living in the United States still fill their prescriptions in U.S. pharmacies.

B. No, because laws prevent the reselling of drugs across international borders, even if the drug companies can't prevent resale within a country.

C. Yes, because the pharmaceutical industry cannot stop people in the United States from buying the exact same prescription drug in another country.

D. Yes, because everyone pays the same price for the drugs.

Answer 1

Purchase of prescription drug by an individual for final consumption from another country is illegal as per the US law.

So, even though, drug companies cannot prevent resale of drugs, there are national laws that prevents resale of drugs across international borders.

These laws encourage drug companies to discriminate on prices.

Hence, the correct answer is the option (B).

Answer 2

Prescription drug prices in the United States are often three to four times higher than in Canada, the United Kingdom, and India. Today, pharmacies in these countries fill millions of low-cost prescriptions through the mail to U.S. citizens. Given that the pharmaceutical industry cannot prevent the resale of these drugs, are the industry’s efforts to price discriminate useless?

 Choose one:A.  Yes, because the pharmaceutical industry cannot stop people in the United States from buying the exact same prescription drug in another country.B.  No, because laws prevent the reselling of drugs across international borders, even if the drug companies can't prevent resale within a country.C.  Yes, because everyone pays the same price for the drugs.D.  No, because most people living in the United States still fill their prescriptions in U.S. pharmacies.