Solved

The Drug Maker Wyeth Produces the Hormone-Therapy Drug Premarin, Which

Question 131

Multiple Choice

The drug maker Wyeth produces the hormone-therapy drug Premarin, which is derived from the urine of pregnant mares. Not even Wyeth knows exactly what chemicals are in it, and the method of making the drug is a trade secret. Barr Laboratories has been trying to make a pill that is close enough to Premarin to be approved by the U.S. Food and Drug Administration as an "equivalent" drug. This story illustrates the importance of:


A) declining long-run cost curves as a way of preserving monopoly.
B) declining demand curves as an essential ingredient in keeping monopoly.
C) barriers to entry in keeping a monopoly position.
D) economies of scope in cementing a monopoly position.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents