Economics Today the micro view 13th edition

posted by .

A British pharmaceutical company spent several years and considerable funds on the development of a treatment for HIV patients. Now, with the protection afforded by patent rights, the company has the potential to reap enormous gains. The government, in response, has threatened to tax away any rents the company may earn. Is this an advisable policy? Why or why not?

  • Economics Today the micro view 13th edition -

    Take a shot, what do you think?

    Hint: how much R+D will companies engage in if governments can come in an tax away any economic rents generated by that R+D?

  • Economics Today the micro view 13th edition -

    clinton

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    Mirk Labs is a British pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab (pronounced zay-tab), an allergy medication. The global demand for Zatab is: Qd=15.0-0.2P Where …
  2. Managerial Economics

    Mirk Labs is a British pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the U.S on Zatab, an allergy medication. The global demand for Zatob is Qd=15.0-0.2P where Qd is annual quantity demanded …
  3. accounting

    Brianna Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Brianna noticed that a great …
  4. tidewater tech

    A British pharmaceutical company spent years and considerable funds on the development for a treatment for HIV patients. Now, with the protection afforded by patent rights, the company has the potential to reap enourmous gains. The …
  5. math

    Pinnacle Homes, a real estate development company, is planning to build five homes, each costing $125,000, in 2 1/2 years. The Galaxy Bank pays 6% interest compounded semiannually. How much should the company invest now to have sufficient …
  6. math homework help

    Pinnacle Homes, a real estate development company, is planning to build five homes, each costing $125,000, in 2.5 years. The Galaxy Bank pays 6% interest compounded semiannually. How much should the company invest now to have sufficient …
  7. math

    Pinnacle Homes, a real estate development company, is planning to build five homes, each costing $125,000, in 2 years. The Galaxy Bank pays 6% interest compounded semiannually. How much should the company invest now to have sufficient …
  8. Managerial Economics

    Mirk Labs is a pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the U.S. on Zatab, an allergy medication. The global demand for Zatab is Qd= 15.0- 0.2 P where Qd is annual quantity demanded (in …
  9. Managerial Economics

    Mirk Labs is a pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the U.S. on Zatab, an allergy medication. The global demand for Zatab is Qd= 15.0- 0.2 P where Qd is annual quantity demanded (in …
  10. Managerial Economics

    Mirk Labs is a pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the U.S. on Zatab, an allergy medication. The global demand for Zatab is Qd= 15.0- 0.2 P where Qd is annual quantity demanded (in …

More Similar Questions