The market for new drugs is not usually perfectly competitive, since the companies manufacturing these drugs are usually granted patents, and this restricts entry into the industry.

Name: The market for new drugs is not usually perfectly competitive, since the companies manufacturing these drugs are usually granted patents, and this restricts entry into the industry.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Patents grant exclusive rights to manufacture and sell a new drug, limiting competition and preventing a perfectly competitive market.

The Market for New Drugs Is Not Usually Perfectly Competitive