GlaxoSmithKline prices Combivir, its AIDS drug:
A) at marginal cost.
B) at the same price as other firms do.
C) 25 times higher than the price of equivalent drugs in countries in which its patent is not recognized.
D) where supply intersects demand.

Question

Quizplus · Accepted Answer

GlaxoSmithKline prices Combivir, its AIDS drug, at a much higher price (25 times higher) in countries where its patent is recognized than in countries where it is not recognized. This is a common strategy for pharmaceutical companies to maximize profits in countries with stronger patent protections. The other options (A, B, and D) do not accurately reflect how pharmaceutical companies typically price their drugs.

GlaxoSmithKline Prices Combivir, Its AIDS Drug