week 9 microeconomics analysis 2

Pharmaceutical Drugs and Drug Companies

Discuss the market for pharmaceutical drugs. Include a discussion of the following points in your answer, using examples where appropriate:

1. Is the market for pharmaceutical drugs an oligopoly market or a monopolistically competitive market? Support your answer.
2. Discuss the importance and cost of research and development. Does every drug pay off?
3. Is strategic behavior important in this market? Support your answer.
4. Is product differentiation important in this market? Support your answer.
5. How does the movement from a patented drug to a generic drug affect this market?

Submission Requirements:

• Attach a Word document of 150 to 250 words that contains all answers.
• Format: Double line space, Times New Roman, 12-point font
• Formal references in APA format must be provided.
• This submission must be paraphrased in your own words. Adhere to the academic honesty policy.
• No more than 10% of your document can be quoted. Avoid answering any of the questions with a quote. Quotes should support your discussion instead of answering questions for you.