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Jason owns a company that produces a very rare type of heart medicine for elderly people. The medicine is very effective and in fact no
Jason owns a company that produces a very rare type of heart medicine for elderly people. The medicine is very effective and in fact no one else has figured out a way to make a type of product that is as good as the one that Jason makes. If you want the medicine, you have to buy it from Jason. The Government has decided to step in and regulate the price of the medicine to try to make it available to more senior citizens. They have told Jason that he is allowed to make a 3% profit margin on top of his costs which means that whatever he says his costs are, he will be allowed to charge 3% more than that to the public. Regardless of his personal sense of ethics towards sick old people, Jason will have an economic incentive to: Question 30 options: Explain that his costs will continue to come down Try to find other comparable products for people to buy Overstate his costs to try to get the Government to allow him to charge a higher regulated price Inform Government about Unfair Buyer Behavior
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