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(b) When a brand name drug's patent protection expires, many generic producers are usually ready to enter the market. These firms' products are close substitutes,

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(b) When a brand name drug's patent protection expires, many generic producers are usually ready to enter the market. These firms' products are close substitutes, they have similar production technologies, the regulatory hurdles to enter are not so great, and, within a few months, there are plenty of rivals. What would you predict for the profitability during these first few months after generic drug entry? (2.5 marks)

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