Pharmaceutical Companies Typically Face Very High Fixed Costs When Developing

Pharmaceutical companies typically face very high fixed costs when developing new drugs.The marginal cost of producing a drug after development is very low.When these companies set price and output to maximize profit,patients pay a _____ price for _____ amounts of the drug than are socially optimal.

A) lower;lower
B) higher;higher
C) lower;higher
D) higher;lower

Correct Answer:

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