1.4. As we saw in this chapter, drug companies often charge much more for the same drug...

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1.4. As we saw in this chapter, drug companies often charge much more for the same drug in the United States than in other countries.

Congre often con iders passing laws to make it easier to import drugs from these low-price countries (it also considers passing laws to make it illegal to import these drugs, but that's another story).

If one of the e law passes, and it becomes effortless to buy AIDS drugs from Africa or antibiotics from Latin America-drugs that are made by the ame companies and have essentially the same quality controls as the drugs here in the United tates-how will drug companies change the prices they charge in Latin America and Africa? Why?

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Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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