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- Evaluate the impact competitors and additional economic factors have on the results of the generic drug pricing strategies. What factors contribute to the advantages and disadvantages of various pricing strategies?In generic drug pricing what is the impact competitors and additional factors have on the results of the generic drug pricing strategies?1. Given the following table *Table attached* (a) Calculate the average cost-effectiveness ratio for drug A, B, C, D, E (b) Calculate the ICER between drug B and drug C, and between drug E and drug D. (c) Draw a cost-effectiveness frontier, where Y-axis represents effectiveness, X-axis represents a cost.
- Question The Orphan Drug Act provides special patent protection and financial support from the state government for drugs designed to treat patients with diseases or conditions that effect 200,000 people or less. True FalseGive examples of tactics practiced by a buyer or seller that might be consideredunethical.Indicate whether each statement is true or false, and justify your answer.In the US, drug companies receive a patent of 100 years for each drug they develop. This allows them a prolonged legal monopoly on the sale of that drug.
- When the FDA lifted restrictions of TV advertisements for prescription medication in 1997, How has the regulatory affected the market for pharmacuticals?Oculus and Maxygen are small drug companies. Oculus has obtained a patent on a new antibiotic that is effective against an emerging superbug—a bacteria that is resistant to traditional antibiotics. Unfortunately, the Oculus drug has severe side effects, making the drug unsuitable except for patients who are desperate. Ownership of this drug is worth $20 million to Oculus under the current situation. Maxygen has a patent on another drug that is of no therapeutic value in itself so the drug generates no current income for Maxygen. However, when combined in a particular way with the Oculus drug, it dramatically reduces the negative side effects. The value of the two drugs together is estimated at $55 million. Maxygen is negotiating to sell its patent to Oculus. Situations of this type are fairly common in the drug business and sales of patent rights are common. However, sometimes negotiations over such sales take a long time and sometimes negotiations are unsuccessful. Why…The profit maximizing monopolist would achieve loss minimization when... Group of answer choices Price is above average total cost. Total cost equals total revenue. Price is between average total cost and average variable cost. Price is below average variable cost.
- The New York Times has stated that Mylan, the company that makes the now infamous Epipen, has become “the poster boy for out of control drug prices.” Why did this Pittsburgh-based company raise prices so much that Americans pay three times as much as Canadians for the same drug? Do you think patents are good for society?You are considering entering a market serviced by a monopolist You are considering entering a market serviced by a monopolist. You currently earn $0 economic profits, while the monopolist earns $5. If you enter the market and the monopolist engages in a price war, you will lose $5 and the monopolist will earn $1. If the monopolist doesn’t engage in a price war, you will each earn profits of $2.There are two possible solutions or equilibria. What are they? You are considering entering a market serviced by a monopolistA monopoly drug producer that has a constant marginal cost of $1 sells in only two countries and faces a linear demand curve of Q1 = 12 – 2P1 in Country 1 and Q2 = 9 – P2 in Country 2. What price does it charge in each country? What quantity does it sell in each country? explian
