Research has shown that most economic profits from selling a prescription drug are eliminated 20 years after the date the product was first invented.The main reason for the elimination of profits is

Question

Quizplus · Accepted Answer

After 20 years, the patent protection for the drug expires and other firms can produce cheaper generic versions of the drug. This increases competition and eliminates economic profits for the original firm that developed the drug. Therefore, choice D is the correct answer. Option A is incorrect as the passage does not suggest that most people taking the drug would be deceased or cured of the illness after 20 years. Option B is also not correct as it does not address the main reason for elimination of profits. Option C is incorrect as it does not make sense since an increase in demand would typically increase profits, not decrease them.

Research Has Shown That Most Economic Profits from Selling a Prescription