Pharmaceutical companies can expect to earn large profits from blockbuster drugs such as high blood pressure, allergies, etc., while under patent protection. What is the source of these profits? Upon patent expiration, numerous rival drug companies offer generic versions of the drug to consumers. Discuss the effect of patent expiration on market structure, pricing, and profitability for the drug. As part of your answer, find and link to an article that supports your position. Articles are first come, first served and no two articles may match exactly.
Pharmaceutical companies can expect to earn large profits from blockbuster drugs such as high blood pressure, allergies, etc., while under patent protection. What is the source of these profits? Upon patent expiration, numerous rival drug companies offer generic versions of the drug to consumers. Discuss the effect of patent expiration on market structure, pricing, and profitability for the drug. As part of your answer, find and link to an article that supports your position. Articles are first come, first served and no two articles may match exactly.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 2.2CE
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Transcribed Image Text:Pharmaceutical companies can expect to earn large profits from blockbuster drugs such as high blood pressure, allergies,
etc., while under patent protection. What is the source of these profits? Upon patent expiration, numerous rival drug
companies offer generic versions of the drug to consumers. Discuss the effect of patent expiration on market structure,
pricing, and profitability for the drug. As part of your answer, find and link to an article that supports your position.
Articles are first come, first served and no two articles may match exactly.
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