Recall the Application about allegations that the makers of branded drugs made deals with generic drug makers once the patents expired on branded drugs to answer the following question(s).
-Recall the Application. When a patent ends and generic drugs are introduced there is downward pressure on price. Therefore, the makers of the brand name drug will
A) raise their price.
B) abandon the product.
C) claim the generic is not as good as the patent version of the drug.
D) price discriminate.

Question

Quizplus · Accepted Answer

When a patent ends and generic drugs are introduced, the makers of the brand name drug often claim the generic is not as good as the patent version of the drug as a strategy to maintain their market share and justify their higher prices. This is because direct competition from generics typically leads to a significant price drop for the branded drug, so the original manufacturers may attempt to differentiate their product by asserting superior quality or effectiveness.

Recall the Application About Allegations That the Makers of Branded