New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products.
-Because it's set up to make profits while meeting people's needs,New Age stands to make larger profits when prices fluctuate.

Question

Quizplus · Accepted Answer

The statement about New Age Pharmaceuticals making larger profits when prices fluctuate due to its setup to meet people's needs and make profits is speculative and not directly supported by the information provided. The profitability in price fluctuations would depend on various factors including the company's pricing strategy, cost management, market demand, and competition, which are not detailed in the provided information.