Homework for Chapter 3
from end-of-chapter questions)
10 points possible
By virtue of a contract, s
ince 2014 Pfizer
has held exclusive rights - in the U.S., Europe and the rest of the
world - to distribute
NEXIUM (esomeprazole magnesium), a leading
prescription drug currently approved to treat the symptoms of gastro-esophageal reflux disease (GERD).
s monopsony and monopoly power from this exclusive deal for
NEXIUM is earning
unexpectedly huge profits. Is this sufficient justification for
AstraZeneca to buy out
? Explain. (1
In each of the following situations, why are firms likely to benefit from vertical integration?
(1 point each)