Quotulatiousness

December 2, 2015

Maximizing Profit under Monopoly

Filed under: Economics, Health — Tags: , , , , , — Nicholas @ 05:00

Published on 18 Mar 2015

AIDS has killed more than 36 million people worldwide. There are drugs available to treat AIDS, but the price of one pill is incredibly high in the U.S. — coming in at 25 times higher than its cost. Why is that? In this video, we show how patent rights have created a monopoly in the U.S. market for AIDS medication, causing pills to be very expensive. In other countries, however, such as India, which does not recognize patents on AIDS medication, prices remain low. Using this example, we go over how monopolies use market power to increase prices.

Related posts:

  1. China’s rare earth monopoly bid goes smash
  2. Maximizing Profit under Competition
  3. Maximizing Profit and the Average Cost Curve
  4. The forgotten history of the game of Monopoly
  5. The natural lifecycle of a “monopoly”

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Powered by WordPress