Why are patients who suffer from rare terminal diseases more likely to die if the cost of new drug development is about the same for rare and more common terminal diseases?
A) Federal regulations require that drugs for common diseases get developed before drugs for rare diseases.
B) The market is larger for more common diseases,- and so it is more likely drugs would be developed for the common diseases.
C) Drug firms practice perfect price discrimination.
D) Drugs for rare and common diseases can be sold as bundled goods.

Question

Quizplus · Accepted Answer

Drug development is a costly and time-consuming process. Pharmaceutical companies are more likely to invest in developing drugs that will have a larger market and generate more revenue. Therefore, drugs for more common diseases are developed more frequently than drugs for rare diseases. This means that patients suffering from rare terminal diseases are less likely to have access to new drugs that could potentially prolong their life or improve their quality of life.

Why Are Patients Who Suffer from Rare Terminal Diseases More