Prescription medications, Critically analyze the pros and

Prescription medications

Assignment Help Business Economics

Reference no: EM13834797

Discussion topic: Prescription Medications

Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from the chapter in this unit such as government intervention, inefficiencies, price elasticity, etc. in your answer.

In the first case, assume the medication is for a life threatening illness for which your child has been diagnosed.

In a second case, assume the medication is for an improved quality of life issue, such as achieving a healthy weight.

What are the impacts that the pharmaceutical company that makes the medications in question will experience? How will that affect the pharmaceutical company’s production decisions? What about its decisions to conduct further research into new drugs?

Reference no: EM13834797

Questions Cloud

Find and interpret the output elasticity : Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7, where Q is total output or units produces; K, capital; L, labor; and M, materials. That is this is an input factor production function. Find and interpret the output..

What revenues and profits for each firm and for merged firm : Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. What are the total costs, prices, revenues..

Economic growth and international trade increase consumption : Explain the advantages of specialization and trade in international economics. Explain how economic growth and international trade increase consumption possibilities.

Project is estimated to require an investment : A project is estimated to require an investment of $25,000, have a life of 5 years and 0 salvage value and have an annual net cash flow that can be described by a symmetric triangular distribution with a = $5,000, and b = $12,000. If the minimum requ..

Prescription medications : Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from the chapter in this unit such as government intervention, inefficiencies, price elasticity, etc. In the first case, assume the me..

Affect the market clearing price and quantity in each market : Discuss how each of the following will affect the market clearing price and quantity in each market. Discuss how the supply and /or demand curves will shift in the following cases (if at all) Incomes rise and the good is a normal goods.

Describe the pros and cons of the oligopolistic firms : Big pharmaceutical companies are oligopolies and as such their strategic decisions are influenced by the rival's actions. Describe the pros and cons of the oligopolistic firms in the healthcare sectors

Changes in quantity of money lead to real changes in economy : Changes in the quantity of money lead to real changes in the economy. If this is the case, why would the central bank ever stop increasing the money supply?

What are the average and marginal costs of a blood draw : It takes a phlebotomist 10 minutes to complete a blood draw. The supplies for each draw cost $5 and the phlebotomist earn$25 per hour. the phlebotomy lab is designed to accommodate 24000 draws per year. its rent is 100,000 per year. what are the aver..

User Account

All Pages