A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company will likely
a. Not do anything-it is prohibited by law to increase its price
b. Bundle the drug with periodic blood testing, selling the bundle for $10,000
c. Require that the patients have the drug administered by the company's medical staff, for an additional $5,000
d. Both B&C
d
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Enforcing property rights in an economy will
A) decrease the level of foreign portfolio investment. B) raise the level of investment. C) cause the market system to work less efficiently. D) encourage corruption and expand the underground economy.
The marginal social cost of production is:
A. the sum of the total cost to the producer and the total external cost. B. the sum of the marginal cost to the producer and the total external cost. C. the sum of the total cost to the producer and the marginal external cost. D. the sum of the marginal cost to the producer and the marginal external cost.