Author Question: Suppose a new vaccine for Lyme disease is developed by Merck, a large drug company. Which of the ... (Read 74 times)

cartlidgeashley · **on:** Jun 29, 2018

Suppose a new vaccine for Lyme disease is developed by Merck, a large drug company. Which of the following is most likely to occur?

A) Merck will apply for a patent on the vaccine that grants it the monopoly rights to the vaccine for many years.
B) Merck will have a monopoly on this vaccine because of economies of scale.
C) Other firms will quickly copy the formula making the market for the vaccine competitive.
D) Merck will not tell anyone about its discovery though it will sell the vaccine.

Question 2

At 2015 prices, the value of production in 2016 was 6 percentage points higher than in 2015. At 2016 prices, the value of production in 2016 was 4 percentage points higher than in 2015.

Using the chain-weighted output index, real GDP is ________ in 2016 than in 2015. A) 10 percent greater
B) 5 percent greater
C) 7.5 percent greater
D) 4 percent smaller