Proposals to reduce patent length for drugs are sometimes made, but some critics

Q: Proposals to reduce patent length for drugs are sometimes made, but some critics

A. Drug is a necessity item and its demand depends upon the requirement of the patient. Demand does not depend on length of patent.

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Proposals to reduce patent length for drugs are sometimes made, but some critics argue that such a change would result in even higher prices during the patent period as companies would need to recover drug development costs more quickly. Is this argument valid if drug companies maximize profit? If patent lengths were reduced, then a monopoly drug manufacturer while under the patent O A. would not charge higher prices because demand would be unchanged. O B. would charge higher prices because demand becomes more inelastic. O C. would charge higher prices because marginal costs would have increased. ( D. would not charge higher prices because demand would become steeper. OE. would not charge higher prices because average costs would decrease.

Explanation / Answer

Drug is a necessity item and its demand depends upon the requirement of the patient. Demand does not depend on length of patent.

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Proposals to reduce patent length for drugs are sometimes made, but some critics

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