The market fails to achieve allocative efficiency

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A medicine that almost always cures Hepatitis C has been developed. The price of the medication (for enough to result in a cure) is $95,000 (really). Explain how, at this price, the market fails to achieve allocative efficiency. Why is this price charged?

Reference no: EM131112718

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The market fails to achieve allocative efficiency : A medicine that almost always cures Hepatitis C has been developed. The price of the medication (for enough to result in a cure) is $95,000 (really). Explain how, at this price, the market fails to achieve allocative efficiency. Why is this price cha..

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