1. How long is a patent good for?
2. What is the problem with patents and new drugs?
3. As it requires more time and money to get a new drug approved, what types of drugs will not get attention?
4. What is price discrimination?
5. How do drug companies practice price discrimination?
6. Describe the features of fixed costs and variable costs with respect to new drugs.
7. A drug costs one 100,000,000 to develop and 1 to make each dose.You can sell the drug for 100. How many do you have to sell to break even?
8. Name two barriers to entry in the hospital market.
10. What percent of a typical hospital bill do individual patients pay?
11. What motivates a non-for-profit hospital?
12. Name two things a not-for-profit might try to maximize.
13. What are the five Ps that motivate managers.
14. If a manager cannot increase his salary, what else could he do to increase his status?
15. What is asymmetric information?
16. What is collusion?
17. Why would hospitals collude?
18. What type of hospital would a university research hospital fall into?
19. How do hospitals measure productivity?
20. Do all hospitals rely on profits?
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