Research and Development money spent by pharmaceutical companies creating new drugs is a sunk cost and therefore it (R & D) ____. A)will affect the profit maximizing price B)affects the profit maximizing quantity of the drug that is produced and sold but not the price C)is a main reason why the price of the drugs are so high relative to the cost of ingredients D)does not influence the price that is charged for the drug

Research and Development money spent by pharmaceutical companies creating new drugs is a sunk cost and therefore it (R & D) ____. A)will affect the profit maximizing price B)affects the profit maximizing quantity of the drug that is produced and sold but not the price C)is a main reason why the price of the drugs are so high relative to the cost of ingredients D)does not influence the price that is charged for the drug

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 3SQP

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