The drug maker Wyeth produces the hormone-therapy drug Premarin, which is derived from the urine of pregnant mares. Not even Wyeth knows exactly what chemicals are in it, and the method of making the drug is a trade secret. Barr Laboratories has been trying to make a pill that is close enough to Premarin to be approved by the U.S. Food and Drug Administration as an "equivalent" drug. This story illustrates the importance of:

A. declining long-run cost curves as a way of preserving monopoly.
B. economies of scope in cementing a monopoly position.
C. barriers to entry in keeping a monopoly position.
D. declining demand curves as an essential ingredient in keeping monopoly.

Answer: C

Economics

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If a yet-to-be released video game receives a positive review in a popular gaming magazine, what happens to the demand curve for the video game?

A) The demand curve is expected to shift to the right. B) The demand curve is expected to shift to the left. C) The demand curve is not expected to change. D) For those who read the review, demand shifts to the left. For those who don't read the review, demand shifts to the right.

Economics

Humberto is the chief operational officer (COO) of the SodaSopa Company and currently serves on the board of directors of the Helium Company of America. Humberto is considered ________ of the Helium Company of America

A) a managing director B) an inside director C) an unpaid advisor D) an outside director

Economics