Experience with patents in the pharmaceutical industry shows that when patents on drugs expire,
A) most patients will continue to buy the drugs from the same firms because their doctors recommend they buy brand-name drugs.
B) prices remain high without patent protection because of a lack of competition. Firms that are not granted patents cannot compete with firms that are granted patents.
C) other firms are free to produce chemically identical drugs. Competition reduces the profits that had been earned by the firms that received patents.
D) firms will find ways to obtain additional patent protection-often by making cosmetic changes in drugs that were patented-so that they can continue charging high prices.
Correct Answer:
Verified
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