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Many antibiotics that once were effective in eliminating infections no longer are because bacteria have evolved to become resistant to them. Some bacteria are now resistant to all but one or two existing antibiotics. Some policymakers have argued that pharmaceutical companies should receive subsidies for developing new antibiotics. A newspaper article states: While the notion of directly subsidizing drug companies may be politically unpopular in many quarters, proponents say it is necessary to bridge the gap between the high value that new antibiotics have for society and the low returns they provide to drug companies. Is there a positive externality in the production of antibiotics? Should firms producing every good where there is a gap between the value of the good to society and the profit to the firms making the good receive subsidies? Briefly explain.
Source: Andrew Pollack, "Antibiotics Research Subsidies Weighed by U.S.," New York Times, November 5, 2010.
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When consumers and businesses have greater confidence that they will be able to repay in the future
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If there is market for an indivisible item in which there is for each of the following numbers exactly one supplier whose cost of producing the item are equal to this number:
Cause the aggregate demand curve to shift to the right
questionnbsp coal shortage at china plants chinese power plants have run short of coal an unintended effect of
At its current short-run level of production, a firm's average variable cost equal $15 per unit, and its average fixed costs qual $30 per unit. its total cost at this production level equal $900. What are its total variable costs at this output level..
If the firm does not shut down in the short run when price equals $4, what will be the firm's production level? Calculate the firm's fixed cost and variable cost at this level of production. What is the break-even price for the firm? What is the sh..
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