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Suppose That the Government Decided to Reduce Pharmaceutical Patent Protection

Question 145

Multiple Choice

Suppose that the government decided to reduce pharmaceutical patent protection by requiring companies to sell their drugs at marginal cost. What are the likely consequences of such a policy?


A) There would be an increase in consumer surplus.
B) The deadweight loss in the market would decline.
C) The future supply of new drugs would decrease.
D) All of these statements are correct.

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