Which of the following statements regarding generic drugs and name-brand pharmaceuticals is false?
A) Pharmaceutical companies have spent large amounts of time and money in their attempts to reduce competition from generic drugs.
B) Generic drugs have the same chemical content as the corresponding branded drug.
C) On average, a generic drug can reduce U.S. sales of a branded drug by as much as 50 percent in the first six months.
D) Pharmaceutical companies need only to renew the patents they have on certain drugs to protect them from competition by generic drugs.
D
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Structural unemployment
A) falls during the expansion phase of the business cycle. B) falls as the pace of technological progress increases. C) generally lasts longer than frictional unemployment. D) falls when the government provides more generous unemployment compensation benefits.
A firm in a perfectly competitive industry is maximizing its economic profit by producing 500 units of output. At 500 units of output, which one of the following must be false?
a. MC < ATC b. MC < AVC c. MC > ATC d. MR < ATC e. MR > AVC