nciples of Economics EconomicsMicro 3 Monopoly (Ch 9) Quiz5 One reason patent pr
ID: 1141606 • Letter: N
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nciples of Economics EconomicsMicro 3 Monopoly (Ch 9) Quiz5 One reason patent protection is vitally important to pharmaceutical firms is o Select one: O a. that taxes on profits from drugs are very high; profits from patent protection enable firms to pay these taxes. O b, the approval process for new drugs through the Food and Drug Administration can take more than 10 years and is very costly. Patents enable firms to recover costs incurred during this process. c. the high salaries pharmaceutical firms pay to scientists and doctors make their labor costs higher than for any other business. Profits from patents are needed to pay these labor costs. O O d. successful new drugs are not profitable. If firms are not granted patents many would go out of business and health care would be severely diminished Next page ources Jump to.. Monopolistic competition, oligopoly (Ch 10) Quiz 6 c])) 12:45 PMExplanation / Answer
1 B is the right reason
2 c. It is only one such firm in local area
3 D is right. They equate MR with MC
4 A is right
5 A is right. Here average costs keep falling
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