Let's examine what happens in an industry when it becomes competitive.

The pharmaceutical industry allows drug makers to hold a patent on a drug for a certain period of time to recoup their costs before it is made available to the public via a generic branding.Why are the prices of generic drugs so much cheaper after they come off a patent?As a part of this, pharmaceutical companies often attempt to extend the patent period for a specific good, buy why?Take a look at the pharmaceutical industry in depth with an eye towards the economics of the industry.