Suppose a drug patent expires. The market consequences of this are? (i) the price will increase (ii) the price will converge to the marginal cost (iii) the quantity sold will increase : (i) and (ii) (ii) and (iii) (i) and (iii) (i), (ii) and (iii)

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Suppose a drug patent expires. The market consequences of this are? (i) the price will increase (ii) the price will converge to the marginal cost (iii) the quantity sold will increase : (i) and (ii) (ii) and (iii) (i) and (iii) (i), (ii) and (iii)

Suppose a drug patent expires. The market consequences of this are? (i) the price will increase (ii) the price will converge to the marginal cost (iii) the quantity sold will increase :

(i) and (ii)

(ii) and (iii)

(i) and (iii)

(i), (ii) and (iii)

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Answer 1

Answer #1

The answer is; B). (ii) and (iii)

(ii) the price will converge to the marginal cost.

(iii) the quantity sold will increase.

Once a patent has expired, generic drug companies are free to market and sell the previously patented prescription drug. The price of a particular drug is brought down by generic competition. Many drug companies will be losing their patent protection.

answered by: Bhargav Agravat

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Answer 2

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Suppose a drug patent expires. The market consequences of this are? (i) the price will increase (ii) the price will converge to the marginal cost (iii) the quantity sold will increase : (i) and (ii) (ii) and (iii) (i) and (iii) (i), (ii) and (iii)

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A pharmaceutical company acquired a 10 year drug patent, making the company a monopolist in the...

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Add Answer to: Suppose a drug patent expires. The market consequences of this are? (i) the price will increase (ii) the price will converge to the marginal cost (iii) the quantity sold will increase : (i) and (ii) (ii) and (iii) (i) and (iii) (i), (ii) and (iii)

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Suppose a drug patent expires. The market consequences of this are? (i) the price will increase (ii) the price will converge to the marginal cost (iii) the quantity sold will increase : (i) and (ii) (ii) and (iii) (i) and (iii) (i), (ii) and (iii)