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Suppose the third and fourth largest pharmaceutical companies by revenues announce a merger. Both have extensive product lines and market prescription drugs all over the world. Are the following antitrust markets:
(a) All prescription drugs.
(b) All pharmaceuticals made by "brand-name" firms-typically inventors of drugs.
(c) All pharmaceuticals made by generic firms-firms that enter and produce drugs for which patent protection has expired.
(d) All treatments for an affliction.
(e) A particular molecule.
(f) The brand-name version of a molecule.
(g) How do the following matter? (i) no legal scope for pharmacists to substitute generics for a brand-name prescription vs. mandatory substitution rules to the cheapest formulation of the same molecule; (ii) size of the cash market; (iii) size of deductibles for those covered by insurance; (iv) dispensing fees based on the value of the prescription vs. fixed dispensing fees.
Consider a contributions game with 2 players. Each player can either ‘Contribute’ or ‘Not.’ If either (or both) Contribute, a good is provided to both. The good is worth 2 jollies to each player. What is the mixed strategy Nash equilibrium in this ga..
With fewer also fewer barriers to trade, countries are able to focus on producing those goods also services which they are best.
Does neoclassical economics focus more on long term economic growth or on recessions? Explain your answer. Does neoclassical economics view prices and wages as sticky or flexible? Why? Does neoclassical economists tend to focus more on cyclical unemp..
A sinking fund is established by Alliance, Inc., at 8% interest compounded semiannually to meet a financial obligation of $1,800,000 in 4 years. What periodic sinking fund payment is required every 6-months to reach the company's goal?
Many television shows, movies, and songs can be downloaded for free on the Internet. Much of this material is copyrighted and was expensive to produce. Much of it is available for a fee through a legitimate site. Should you pay to download an episode..
Assume the money supply is $800, the velocity of money is 7, and the price level is $2. Using the quantity theory of money: Determine the level of real output. Determine the level of nominal output.
Bread and butter are complements. A decrease in the price of bread results in a(n)
how much output should the firm allocate to market 1? Approximately how much output should the firm allocate to market 2? What is the approximate price that will be charged in market 1?
Suppose the demand and supply curves for a large cheese pizza are given by: Using the demand and supply functions above, the equilibrium price of a pizza is ____, and the equilibrium quantity is ____.
The problem of double coincidence of wants is associated with:
The interest rate is 25% (0.25), and there is no inflation. Illustrate what is Mandy's optimal consumption in period 1.
Explain how does the U.S. Government correct for this apparent market failure.
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