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4 votes
Drug companies are allowed to be monopolists in the drugs they discover in order to

asked
User Teofil
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8.1k points

1 Answer

6 votes

Answer:

allow drug companies to charge a price that is equal to their marginal cost

Step-by-step explanation:

Drug companies are allowed to be monopolists in the drugs they discover in order to allow drug companies to charge a price that is equal to their marginal cost.

When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in price discrimination. The practice of selling a product to different customers at different prices when marginal cost is the same is known as price discrimination.

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User Mdzh
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8.8k points
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