The physical production of medicinal drugs is often only a very small fraction of the eventual price consumers pay. Which of the following may explain this?

Question

Quizplus · Accepted Answer

Pharmaceutical companies often invest heavily in research and development to discover new drugs and bring them to market. The high price of medicinal drugs allows them to recoup these costs and make a profit. Furthermore, the production process may involve obtaining regulatory approval and meeting strict quality control standards, which can also contribute to the final price. While monopolies and price discrimination may play a role in some cases, the high cost of production is likely to be the main factor in the pricing of medicinal drugs. Predatory pricing, which involves intentionally setting low prices to drive competitors out of business, is unlikely to be a factor in the pharmaceutical industry due to the high costs involved in drug development and production.

The Physical Production of Medicinal Drugs Is Often Only a Very