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Unformatted text preview: Would you want drug companies to quickly release new drugs to the market without careful and prudent testing? Drug companies may have incentive to release a drug too quick in anticipation of large profits. The Federal Drug Administration (FDA) is charged with protecting consumers by assuring proper drug testing before a drug reaches market. This is of course is no guarantee. The allergy medication Seldane was approved and released, and I used it myself. But after being on the market for a while, a dangerous drug interaction was discovered. Seldane plus a common antibiotic, erythromyacin, proved to be a deadly combination. Sure, if a drug company were to behave irresponsibly you can sue, but what cost have you incurred in the event that someone dies. Will the law suit bring back a family member? There are market imperfections associated with pure capitalism that government tries to mitigate through regulation....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10