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Government regulators sometimes set the price of a drug at itsmarginal cost of production without...

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Economics

Government regulators sometimes set the price of a drug at itsmarginal cost of production without including a fair share of theglobal joint cost of researeh and development. Which of thefollowing statements is true about this practice? a. hassuresconsumers of the unamited avalability of the drug. b. The describedpractice is almost impossible because development costs are easilydivided among consumers and prices to reflect differences in therelative benefits each receives. c. This behavior is highlyunlikely because every country pays its fair share of the cost ofresearch and development. d. Setting drug prices at the marginalcost of production expands the market and guarantees that tocaldrug spending covers all costs, including fixed development costs.e. This practice is a classic example of free riding. 0 0

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