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According to The Wall Street Journal, the wholesale price of the generic drug fluoxetine (the generic for Prozac) is $3.60 per 100.
a. Given that the cost of dispensing them is about $5 to $10 per prescription, how much would you expect the drug to sell for?
b. In 2008 a prescription for 100 tablets of fluoxetine was selling for $54 at DrugStore.com. It sold for similar prices at other pharmacies. What would you conclude about the market structure, given that information?
c. At pharmnet.com one could buy 100 fluoxetine tablets for $26. If this is true, what can we say about drug market imperfections?
part-1question 1nbsp following the general methodology used by econometricians as explained in the session for week 1
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