The cost of dispensing fluoxetine (the generic for Prozac) is about $5 to $10 per prescription, but the consumer's price at most pharmacies is about $85. This suggests that the market for prescription drugs is:
A) perfectly competitive.
B) a pure monopoly.
C) something that cannot be explained by economic theory.
D) not very competitive.

Question

Quizplus · Accepted Answer

The large difference between the cost of dispensing and the consumer price suggests that there is limited competition, allowing pharmacies to charge higher prices.

The Cost of Dispensing Fluoxetine (The Generic for Prozac) Is