1. Once a pharmaceutical company gets approval to produce a drug, it has an effective monopoly until the patent expires. To maximize profits monopolies are apt to price discriminate. Which of the following explains why pharmaceutical companies are generally reluctant to price discriminate across states? (3)
   1. It is immoral to charge different people different prices.
   2. It is illegal to charge different prices in different counties.
   3. It is easy to resell drugs on the internet.
   5. Prices don't affect the demand for pharmaceuticals.