After a drug has been approved, the Food and Drug Administration (FDA) continues to monitor the drug and may require additional testing or removal of the drug from the marketplace, which could cost a company billions of dollars. This is an example of __________ that can affect the profitability of firms in an industry.

Question

Quizplus · Accepted Answer

The FDA's ongoing monitoring and potential for requiring additional testing or removal of a drug from the market is an example of government regulation. This type of regulation can significantly impact the profitability of firms within the pharmaceutical industry by imposing additional costs or limiting the sale of products.

After a Drug Has Been Approved, the Food and Drug