Research has shown that most economic profits from selling a prescription drug are eliminated 20 years after the drug is first offered for sale. The main reason for the elimination of profits is
A) firms sell their patent rights to other firms so that they can concentrate on finding drugs to treat new illnesses.
B) after 20 years patent protection is ended and other firms can produce less-expensive generic versions of the drug.
C) the quantity demanded of the drug has increased enough that the demand becomes inelastic and revenue falls.
D) after 20 years most people who have taken the drug have passed away or are cured of the illness the drug was intended to treat.
B
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A division of a firm is
a. a logical sub-organization of the firm b. a level within the firm in which a large degree of autonomy is vested c. a level of hierarchy within a firm that defines the scope of a manager d. all of the above
The Wagner Act of 1935
a. prevents unions from acting as cartels. b. allows workers joining a unionized firm to choose not to join the union. c. prevents employers from interfering when workers try to organize a union. d. prevents firms from hiring permanent replacements for workers who are on strike.