Do you think that the large profits reaped by firms in the U.S. pharmaceutical industry provide the industry with sufficient incentives to innovate? What type of action should the government take to soften the impact of monopolies?

Assignment Question

Read the following directions and post an answer of at least two paragraphs (a minimum of 500 words). Be sure to use standard English in your answers, with appropriate punctuation (refer to the grading rubric). I am looking for evidence that you have read the response as well as what your opinion is on the topic. After you compose your response you will upload your posting using this tool. Assignment: The following articles address issues surrounding monopoly power. As noted earlier in the semester our economic system provides for patent protections (monopoly power). Enabling individuals to financially benefit from innovations is also balanced with a monopolist’s ability to raise the price of products beyond the ability for some to afford it, such as a diabetic needing insulin (an inelastic good) Review the following articles and the articles attatched: –

• https://www.economicshelp.org/blog/365/monopoly/benefits-of-monopoly-power/
• https://www.theatlantic.com/health/archive/2019/03/drug-prices-high-cost-research-and-development/585253/
• https://www.cbsnews.com/news/whats-so-bad-about-monopoly-power/ Answer these 3 questions:

1) Do you think that the large profits reaped by firms in the U.S. pharmaceutical industry provide the industry with sufficient incentives to innovate?

2) What type of action should the government take to soften the impact of monopolies?

3) When a pharmaceutical company comes up with a vaccine for the corona virus should there be a price ceiling imposed on the cost?

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