[C, 40-41]



[C, at end]

That U.S. drug companies can sell their drugs in Canada and Mexico for much less than they sell them for in the U.S. suggests that

a) the drugs sell for less than their marginal cost in Canada and Mexico

b) the marginal cost of producing the drugs is between the U.S. price and the Canadian price (so on average the company is making a profit)

c) the marginal cost of producing the drugs is less than the Canadian and Mexican price

d) the marginal cost of producing the drugs is higher than even the U.S. price.

[A, at end]

If the U.S. government were to note that because drug companies can sell their drugs in Canada and make a profit at those regulated prices and impose a similar set of regulations in the U.S. this would have the effect of

a) lowering the price of drugs in the U.S.

b) increasing the motivation for U.S. drug companies to innovate in the future

c) increasing the motivation for Canadian drug companies to innovate in the future

d) eliminating profit for drug companies

[B, at end]

If the U.S. government were to note that because drug companies can sell their drugs in Canada and make a profit at those regulated prices and impose a similar set of regulations in the U.S. this would have the effect of

a) raising the price of drugs in the U.S.

b) decreasing the motivation for U.S. drug companies to innovate in the future

c) increasing the motivation for Canadian drug companies to innovate in the future

d) eliminating profit for drug companies

[D, at end]

When a drug ceases to require a prescription it is said to have gone

a) off-the-rack

b) off-the-wagon

c) off-label

d) over-the-counter

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