7. In 2007, the Ontario government attempted to push down the price of generic drugs by setting the maximum price that could be charged by manufacturers (and would be reimbursed by the government) at 50% of the brand price. Despite some drugs having many generic competitors, prices remained stubbornly high, far above the variable unit cost of manufacturing, and seemed stuck at the ceiling of 50% of the brand price. Generic firms were charging prices far above the their cost but did not dropping their prices to increase their market share. Explain what was going on. In our health system generally, it is believed that resources should be allocated to patients according to their need. The Hippocratic Oath sworn by doctors includes the words \"I will apply, for the benefit of the sick, all measures [that] are required...\" However, provincial drug insurance systems generally use a cost-benefit assessment to deny access to drugs with a high cost-benefit ratio, even though those drugs might be \"required\" for the health of the patient. Which is the right standard doing everything possible for the patient in front of me, or choosing the most efficient set of treatments to maximize public health? Discuss