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Table 17-26 Two Prescription Drug Manufacturers (Firm a and Firm B) Are

Question 225

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Table 17-26
Two prescription drug manufacturers (Firm A and Firm B) are faced with lawsuits from states to recover the healthcare related expenses associated with side-effects from its drugs. Each drug manufacturer has evidence that indicates that taking its prescription drug causes liver failure. State prosecutors do not have access to the same data used by drug manufacturers and thus will have difficulty recovering full costs without the help of at least one of the drug manufacturer's studies. Each firm has been presented with an opportunity to lower its liability in the suit if it cooperates with attorneys representing the states. Table 17-26 Two prescription drug manufacturers (Firm A and Firm B)  are faced with lawsuits from states to recover the healthcare related expenses associated with side-effects from its drugs. Each drug manufacturer has evidence that indicates that taking its prescription drug causes liver failure. State prosecutors do not have access to the same data used by drug manufacturers and thus will have difficulty recovering full costs without the help of at least one of the drug manufacturer's studies. Each firm has been presented with an opportunity to lower its liability in the suit if it cooperates with attorneys representing the states.   -Refer to Table 17-26. Pursuing its own best interests, Firm B will concede that taking its drug causes liver failure A) only if Firm A concedes that taking its drug causes liver failure. B) only if Firm A does not concede that taking its drug causes liver failure. C) regardless of whether Firm A concedes that taking its drug causes liver failure. D) None of the above; in pursuing its own best interests, Firm B will in no case concede that taking its drug causes liver failure.
-Refer to Table 17-26. Pursuing its own best interests, Firm B will concede that taking its drug causes liver failure


A) only if Firm A concedes that taking its drug causes liver failure.
B) only if Firm A does not concede that taking its drug causes liver failure.
C) regardless of whether Firm A concedes that taking its drug causes liver failure.
D) None of the above; in pursuing its own best interests, Firm B will in no case concede that taking its drug causes liver failure.

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