Asked by Jessia Brown on Sep 24, 2024
Verified
Once the patent for a drug in the pharmaceutical industry expires,the market for the generic equivalents
A) Is usually considered competitive
B) Is a monopolistic market
C) Has no effect on the profits earned by the original producer
D) Would not exist
Generic Equivalents
Drugs that are chemically identical to a brand-name drug but sold under a generic name, usually at a lower cost.
Pharmaceutical Industry
The sector of the healthcare industry that is involved in the development, production, and marketing of medications, where it plays a crucial role in the development of new drugs and therapies.
Patent Expires
The point at which a patent's protection ends, allowing others to make, use, or sell the invention without infringement.
- Comprehend the reasons behind the profitability and lack thereof in competitive and monopolistic markets.
Verified Answer
SR
sayuki ryuko4 days ago
Final Answer :
A
Explanation :
When the patent for a drug in the pharmaceutical industry expires, generic equivalents can enter the market and compete with the original producer. This creates a competitive market as there are now multiple suppliers offering the same product, driving down prices and increasing consumer choice. While the original producer may see a decrease in profits due to the increased competition, the generic market would still exist. Therefore, option A is the correct choice.
Learning Objectives
- Comprehend the reasons behind the profitability and lack thereof in competitive and monopolistic markets.