In the pharmaceuticals industry, the principle of ____ long-run average cost is present with the development of a new prescription drug.

Question

Quizplus · Accepted Answer

The principle of decreasing long-run average cost is present in the pharmaceuticals industry for new prescription drugs due to economies of scale and high initial research and development costs that spread over more units as production increases.

In the Pharmaceuticals Industry, the Principle of ____ Long-Run Average