Name brand drugs are able to continue capitalizing on their market power even after generic drugs enter the market because (i)
Almost all people fear the generic drug companies are devoting too few resources to research and development.
(ii)
Some people fear that generic drugs are inferior.
(iii)
Some people are loyal to the name brand.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(i) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

While some people may fear that generic drugs are inferior, this fear is not widespread and many people are willing to switch to the generic version once it becomes available. The main reason why name brand drugs are able to continue capitalizing on their market power is because some people are loyal to the name brand. Additionally, name brand companies may also invest heavily in marketing and advertising to maintain their dominance in the market.

Name Brand Drugs Are Able to Continue Capitalizing on Their