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The following articles address issues surrounding monopoly power. As noted earlier in the semester our economic system provides for patent protections (monopoly power). Enabling individuals to financially benefit from innovations is also balanced with a monopolist’s ability to raise the price of products beyond the ability for some to afford it, such as a diabetic needing insulin (an inelastic good)
Please review the following articles:
The benefits of monopoly power
The downside of monopoly power
Why pharmaceutical companies charge so much
1) Do you think that the large profits reaped by firms in the U.S. pharmaceutical industry provide the industry with sufficient incentives to innovate?
2) What type of action should the government take to soften the impact of monopolies?
3 When a pharmaceutical company comes up with a vaccine for the corona virus should there be a price ceiling imposed on the cost?
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