Question

Please respond in 150-200 words and dont handwrite please and thank you!!

1.

Let's examine what happens in an industry when it becomes competitive.  

The pharmaceutical industry allows drug makers to hold a patent on a drug for a certain period of time to recoup their costs before it is made available to the public via a generic branding. Why are the prices of generic drugs so much cheaper after they come off a patent? As a part of this, pharmaceutical companies often attempt to extend the patent period for a specific good, buy why? Take a look at the pharmaceutical industry in depth with an eye towards the economics of the industry.

Answer 1