Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2
Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2
www.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2 sole producer of the drug tor up to 20 years. As a result, the firm can charge a price much greater than its marginal cost of production For example, one of the worlds best-selling drugs the heart medication Plavix. sold tor about S7 per pill though It costs about 3c per pill to produce. A new drug Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2 to treat hepatitis c. Harvoni. sells for $1,350 a pill or $113.400 for a 12-weekCHALLENGEBrand-Name and Generic Drugscourse of treatment.Every year,Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2
many pharmaceuticals lose their patent protection. In 2015. drugs with $44 billon of sales lost patent protection, including Ability (which treats neuwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2iabetes). Nuvtgil (attention disorder/weight loss), and others expire. In 2017. patent protection for Tamiflu (viral infections). Acthar Gel (endocrine disorders), and others end.Generally, when a patent for a highly profitable drug expires, firms enter the market and sell generic (equivalent) versi Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2ons of the brand-name drug. Generics share of all U.S. prescriptions rose from about 18% in 1984 to nearly 80% currently.The U.S Congress, when it oriEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
ginally passed a law permitting generic drugs to quickly enter a market after a patent expires, expected that patent expiration would subsequently leawww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2the same price, and entry by many firms will drive the price down to the competi-tive level Even if consumers view the goods as imperfect substitutes, one might expect the price of the brand-name drug to fall.However. the prices of many brand-name drugs have increased after their patents expired and Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2 generics entered the market The generic drugs are relatively inexpensive, but the brand-name drugs often continue to enjoy a significant market shareEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
and sell tor high prices. Regan (2008), who studied the effects of generic entry on post-patent price competition tor 18 prescription drugs, found anwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2 the entry of generic drugs9’Under the 1984 Hatch-Waxman Act, the U.S. government allows a firm to sell a generic product after a brand-name drag's patent expires if the generic-drag firm can prove that its product delivers the same amount of active ingredient or drug to the body in the same way as Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2the brand-name product. Sometimes the same firm manufactures both a brand-name drug and an identical generic drag, so the two have identical ingredienEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
ts. Generics produced by other firms usually have a different appearance and name than the original product and may have different nonactivc ingredienwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2 only supplier of a good that has no close substitute. Monopolies have been common since ancient times. In the fifth century Be. the Greek philosopher Thales gained control of most of the olive presses during a year of exceptionally productive harvests. Similarly, the ancient Egyptian pharaohs contr Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2olled the sale of food. In England, until Parliament limited the practice in 1624, kings granted monopoly rights called royal charters or patents to cEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
ourt favorites. Today, virtually every country grants a patent—an exclusive right to sell that lasts for a limited time—to an inventor of a new producwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2domain names.Consumers hate monopolies because monopolies charge high prices. A monopoly can set its price—it is not a price taker like a competitive firm is. A monopoly’s output is the market output, and the demand curve a monopoly faces is the market demand curve. Because the market demand curve i Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2s downward sloping, the monopoly doesn’t lose all its sales if it raises its price, unlike a competitive firm. Consequently, the monopoly sets its priEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
ce above marginal cost to maximize its profit. Consumers buy less at this high monopoly price than they would at the competitive price, which equals mwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2at a profit maximizing monopsony sets its price below the competitive level, which lowers welfare compared to a competitive market.In this chapter, we examine seven main topics1Monopoly Profit Maximization. Like all firms a monopoly maximizes its profit by setting Its price or output so that Its mar Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2ginal revenue equals Its marginal cost.2Market Power and Welfare. How much the monopoly's price is above its marginalcost depends on the shape of theEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
demand curve that the monopoly faces, and this gapbetween price and marginal cost lowers welfare relative to the competitive level3. Taxes and Monopolwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2rently from each other.4 Causes of Monopolies. Two major causes for a monopoly are a firm's cost advantage over other potential firms and government actions.5. Government Actions That Reduce Market Power. A government can regulate the price a monopoly charges or allow other firms to enter the market Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2 to reduce or eliminate the welfare loss from a monopoly.6 Networks, Dynamics, and Behavioral Economics. If its current sales affect a monopoly's futuEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
re demand curve, a monopoly that maximizes Its long-run profit may choose not to maximize its short-run profit.7. Monopsony. A monopsony—a single buyewww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2ompetitive firms and monopolies alike maximize their profits using a two-step procedure (Chapter 8). First, the firm determines the output at which it makes the highest possible profit. Second, the firm decides whether to produce at that output level or to shut down, using the rules described in Cha Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2pter 8.www.downloadslide.net11.1 Monopoly Profit Maximization 387Fora competitive firm, we distinguished between a lowercaseq, which represented a firEbook Microeconomics - Theory and applications with calculus (4/E): Part 2
m’s output, and an uppercase y, which reflected the market quantity. Because a monopoly sells the entire market quantity, we use Q to indicate both thwww.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be the Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2el. A monopoly, like any firm (Chapter 8), maximizes its profit by operating where its marginal revenue equals its marginal cost, as we now show formally. Ebook Microeconomics - Theory and applications with calculus (4/E): Part 2www.downloadslide.netMonopoly and MonopsonyMonopoly: one parrot.A firm that creates a new drug may receive a patent that gives it the right to be theGọi ngay
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