A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug.The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it.The company will likely

Question

​A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug.The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it.The company will likely

Quizplus · Accepted Answer

Option B of bundling the drug with periodic blood testing is a valid strategy to increase the overall price of the product while still complying with the price regulation. By bundling the drug with an additional service, the company can justify the higher price point.

Option C of requiring the patients to have the drug administered by the company's medical staff for an additional fee is another effective strategy. The service provided by the company can be deemed necessary for the safe and effective use of the drug, which can justify the additional cost.

Therefore, the best approach for the company would be to implement both options B and C. By doing so, the company can increase its revenue while still adhering to the price regulation.

​A Pharmaceutical Company Faces a Price Regulation Where It Cannot

A Pharmaceutical Company Faces a Price Regulation Where It Cannot