Health Economics and Financing

  1. Why are price controls a bad idea for the government to place on pharmaceutical companies? (explain what a price control is and how the government would use it on pharmaceutical company drugs)
  2. Using Pharmaceutical Revenues please explain the push supply or pull demand strategies used to increase sales.
  3. How can a pharmaceutical company become a monopoly for a product or a drug? What are the benefits for the company and the economy as a whole? What are some of the drawbacks?
  4. Using retail pharmacies as an example of oligopolies, explain the benefits and possible downfalls of this type of market structure
  5. Why is it so important the government allow patents for new drugs? What about the ability to recoup R&D with high drug prices?

Sample Solution