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Assignment:
Watch the following PBS Newshour video that details some of the issues surrounding antibiotic drug development and production:
1.Based on the information presented in the news piece where is the price (P) relative to average total costs (ATC) in the new antibiotic drug market? Why do you think P is either above, below, or at ATC?
- What is the logic for allowing pharmaceutical companies to be granted a patent or a government sanctioned monopoly for a certain amount of time?
- Do you think that government intervention in this market necessary? If you either believe or don’t believe government intervention is necessary in this market briefly explain your reasoning.
In addition, it is required to reply to at least two other students’ posts by offering respectful suggestions, comments, or critiques related to the subject matter and their post.
The price is below the ATC because manufacturers cannot just increase their prices because it will cause them loose market share because consumer will look for a cheaper price medicine with the same effect. ATC is increasing because
I think the price of new antibiotic drug market is below the ATC. This is because there are other alternative antibiotics available in the market, and the consumers will likely to find a cheaper drugs instead of the