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This 1 page Class Notes was uploaded by Emma Norden on Sunday November 29, 2015. The Class Notes belongs to Econ 1101 at University of Minnesota taught by Thomas Holmes in Fall 2015. Since its upload, it has received 18 views. For similar materials see Principles of Microeconomics in Economcs at University of Minnesota.
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Date Created: 11/29/15
Econ Week 12 Drug Industry Generating new drugs is very expensive research tests etc Patent Monopoly 17 years from grant date or 20 years from application date can charge high prices for drug US is a disproportionate source of drug revenue Look for incentive for innovation Net expected value of investment expected lifetime operation profit fixed cost research and development If fixed costgt expected lifetime operation profit don t do it