After a drug has been invented, monopoly (when compared to perfect competition)creates

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Monopoly power allows the firm to set higher prices since there are no close substitutes available in the market. Therefore, consumers have less bargaining power and end up paying higher prices for the drug. This also leads to higher profits for the monopolist since their pricing power allows them to capture a larger share of the market. However, this does not necessarily translate into higher production levels, as the monopolist may choose to limit production to maintain their price-setting ability.

After a Drug Has Been Invented, Monopoly (When Compared to Perfect