4. What are the costs and benefits of the following scenario? a.) The government implements a price control for with price greater than $10,000 must be made available for only $2,000. any drug b.) The government offers a half billion prize to the first drug company that develops a vaccine for Coronavirus. c.) The FDA reduces the patent length for drugs to treat Alzheimer's disease from 17 years to 7 years, and all current natents for such drugs that are already more than 7 vears old

4. What are the costs and benefits of the following scenario? a.) The government implements a price control for with price greater than $10,000 must be made available for only $2,000. any drug b.) The government offers a half billion prize to the first drug company that develops a vaccine for Coronavirus. c.) The FDA reduces the patent length for drugs to treat Alzheimer's disease from 17 years to 7 years, and all current natents for such drugs that are already more than 7 vears old

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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List the costs and benefits of the following hypothetical policies.a. The US government offers a $5 billion prize to the first drug company that develops a cure for Alzheimer’s disease.b. The patent length for drugs to treat fatal diseases is reduced to five years, and all current patents for such drugs that are already more than five years old instantly expire.c. The European Medicines Agency announces that it will instantly approve new drug applications that have shown any promise in treating Creutzfeldt-Jakob disease (also known as mad cow disease), even if there are safety concerns or if the evidence of efficacy is not conclusive.d. The US government allows patients to write themselves prescriptions on weekends, when physicians are typically not available.
Should price controls be imposed on life-saving drugs? Will consumers benefit or be harmed by this type of regulation?
For each of the cases below, describe the type of entry barrier that appears to be most relevant. Which of the following describes the type of entry barrier faced for a patented blood pressure medication? OA. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. B. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through limited access to key natural resources. c. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through price cutting Which of the following describes the type of entry barrier faced for legal services? A. There is a created entry barrier for legal services because entry into the market has…
For each of the cases below, describe the type of entry barrier that appears to be most relevant. Which of the following describes the type of entry barrier faced for a patented blood pressure medication? OA. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. B. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through limited access to key natural resources. c. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. OD. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through price cutting. Which of the following describes the type of entry barrier faced for legal services? A. There is a created entry barrier for legal services because entry into the market…
Should the FDA consider economic factors in new drug approvals?
Duolingo is a widely used foreign language app, with 300 million users in 2018. While there is a free version of the app, a premium Duolingo subscription eliminates advertisements during language practice and offers new quizzes with the ability to save lessons for offline use. a. Identify each hurdle for users of the free version of the app. the advertisements that users of the free version must endure the absence of enhanced features-new quizzes and the ability to save lessons for offline use-enjoyed by users of the premium version the subscription fee paid for the premium version of the app b. By offering both a free and a premium version of the app, Duolingo profits more than it would if it offered just one version of the app. O profits only from the free version, not the premium version. O profits only from the premium version, not the free version. O profits less than it would if it offered just one version of the app.
For each of the cases below, describe the type of entry barrier that appears to be most relevant. Which of the following describes the type of entry barrier faced for a patented blood pressure medication? A. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. B. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through limited access to key natural resources. C. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. D. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through price cutting.
Identify the initial equilibrium price and quantity of the drug per day. Suppose the government imposes a price control at $1.50 a dose. How many doses are purchased after the price control is imposed?
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When the FDA lifted restrictions of TV advertisements for prescription medication in 1997, How has the regulatory affected the market for pharmacuticals?
Should there be one $/QALY for an entire country? How would you expect drug companies to react to price limits set by public programs?
3. Given the following table| Life expectancy 20 years 20.5 years 20.6 years 21 years 22 years 22.2 years Treatment Cost of treatment No treatment Drug A Drug B Drug C Drug D Drug E $40,000 $30,000 $50,000 $80,000 $100,000 (a) Calculate the average cost-effectiveness ratio for drug A, B, C, D, E (b) Calculate the ICER between drug B and drug C, and between drug E and drug D. (c) Draw a cost-effectiveness frontier, where Y axis represents effectiveness, X axis represents cost.