Name brand drugs are able to continue capitalizing on their market power even after generic drugs enter the market because (i) almost all people fear the generic drug companies are devoting too few resources to research and development.
(ii) some people fear that generic drugs are inferior.
(iii) some people are loyal to the name brand.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii), and (iii)

Question

Name brand drugs are able to continue capitalizing on their market power even after generic drugs enter the market because (i)	almost all people fear the generic drug companies are devoting too few resources to research and development.
(ii)	some people fear that generic drugs are inferior.
(iii)	some people are loyal to the name brand.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii), and (iii)

Quizplus · Accepted Answer

The statement mentions that "some people fear that generic drugs are inferior" and "some people are loyal to the name brand", thus indicating that both (ii) and (iii) are relevant factors. The statement does not provide any evidence or mention anything about the resources devoted to research and development by generic drug companies, thus ruling out (i) as a choice. Therefore, the best choice is B, which includes (ii) and (iii).

Name Brand Drugs Are Able to Continue Capitalizing on Their