Industry research completion
Axia College of University of Phoenix
The drugstore market is among the industries that have a tremendous impact on the economy and the well-being of the population of our country. Pharmacies are active in the market for drugs. This market has special attributes which make it so contrasting from other markets; for instance, patients or final consumers are not tout ensemble responsible for the choices they made because they have been advised by their original care physicians to take a drug or faction of medicines. (Study of restrictive restrictions in the field of pharmacies, 2008)
The fact that consumers can prevent another stack from using the drugs and diminishing another persons ability to use it makes this a resource that is both rival and excludable; another important characteristic of this market is that consumers often do not cover the damage of the drugs themselves but are relying on health insurance or government assistance. (Study of regulatory restrictions in the field of pharmacies, 2008)
The drug market is prone to so many market failures that has forced the government to intervene hard at all levels of the supply chain; some of the overbearing consequences of government intervention are accessibility, charge and quality of medicines.
The drug market is characterized by high investment in research and development of modern drugs, which are defend by intellectual property rights; in order for a manufacturer to attain a gainful level in the drug market the medicines are protected by patents which restricts competitors from free riding on the inventors discovery; in time patents impose entry barriers that creates a natural but working(prenominal) monopoly for the drug producers. This monopoly leads to inefficient price levels, which in some countries the price received by producers of drugs in subject to price regulation. (Study of regulatory restrictions...
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