Generic drug makers therefore are competing in the market according to the skills in which they specialize. They specialize in efficient production and distribution of drugs, rather than in developing new drugs.
A generic drug maker can go out of business simply on the basis of not executing their business plan well. However, generic producers have built their business plans around the FDA's current set of regulations. A change in those regulations could have an adverse effect on generic drug makers. For example, if the monopoly protections that come from a new drug approval are extended out further, that would reduce the ability of the generic producer to make money on any given drug. This is especially the case of the drug in question becomes obsolete during the time period prior to the generic having access to that market. In such a situation, the generic maker would not have access to that product during its useful economic life. Such extensions of monopoly protections would have to be across board, since most generic producers make hundreds or even thousands of individual drugs.
4. In conditions of perfect competition, it is conceivable that a firm can earn a profit in the short run. In the short run, a change in the market could result in one or more firms earning a profit. However, these profits will signal to other firms to enter the market. When these other firms enter the market, the profit will no longer exist. This is why it is said that there are no long-run profits in a state of perfect competition.
Margins costs in a state of perfect competition are at a point of marginal prices in the long run. If there is a change in the costs, a firm might be able to temporarily exploit this for a profit, but with perfect information consumers will not stand for this. If there is collusion among sellers, the...
Profit Zone: How Strategic Business Design Will Lead You to Tomorrow's Profits In the book The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow's Profits, author Adrian J. Slywotzky (1998) provides insight and information relevant to making a business work both in the present day and in the future. Traditionally, it was believed that market share was (and should be) nearly the only focus of a business, if
Profit Maximization: An Actual or Theoretical Objective? Profits are necessary to day both for the capitalist socialist and any type of economy to survive. Multinationals and giant companies have the profit motive and therefore maximizing profit as the base of their operations. This also goes under a new label namely stock holder gain. This is a form of profits that happens when the profit margins of the company go up and
He believed that people cannot be trusted to act in their own best interest, and are better governed by a state that usurps the profit motive thought process from the people. He understood the evils of the profit motivator in business, and sought to artificially remove it from the equation. However, he too understood that it is natural to seek profit as the motivation for business, as he acknowledged
Fifth, the proposed site is also going to have a transaction-based component which will allow it act as a clearinghouse as well. This strategy has also proven to also provide revenue resiliency (Brouse, 2010). Combined all of these factors of the proposed site provide accountability to donors, give them a glimpse into how their donations are used, provide stickiness and community via social networks, and diversify the revenue streams
profit through investing on Stock Market Generally, all over the world financial markets exemplify a state of intricate and inscrutable situation. These marketplaces are of immense significance in the western nations, where the constituents employ their expertise to invest and generate profit whilst formulating a pool of funds, statistics, derivatives, shares and calculation intricacy. These constituents or elements are those investment maestros who are the whole and sole performers of
Thus, in order to maintain organizational effectiveness, a regular patient feedback system must be developed, regularly conducted, and duly recorded for ease of access and analyses of the management whenever information is needed, this time about the quality of service provided by the organization through its healthcare staff/personnel. To implement this feedback system, patients/relatives of patients will be surveyed and given self-accomplished feedback forms, to be returned sealed and
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