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19 Apr 2022, 01:30
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D
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Difficulty:
55%
(hard)
Question Stats:
69% (02:06) correct
31%
(02:34)
wrong
based on 526
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Occasionally, pharmaceutical companies mark down the price of a new drug sold to pharmacies during a trial phase, when the drug is being marketed to buyers. Such trials often cause pharmacies to buy a huge amount of the drug. Nonetheless, the pharmaceutical companies could often profit more by not giving trials.
Which of the following, if true, most strongly supports the claim above about the pharmaceutical companies’ profits?
A. Generally, the quantity of markdown given by pharmaceutical companies to pharmacies is prudently calculated to be the least needed to attract buyers to the drug.
B. For many drugs, the trial phase during which prices are lowered is about a month, which is not long enough for buyers to get used to the low price.
C. The rationale of such trials is to keep the new drugs at the top of buyers’ minds and appeal to buyers now using competing drugs.
D. Pharmacies often amass in their storage rooms drugs bought at markdown during trials and then sell these drugs later at regular prices.
E. If some pharmaceutical companies offer trials but other competing pharmaceutical companies do not, the companies that offer trials will lure buyers away from the other companies.
Which of the following, if true, most strongly supports the claim above about the pharmaceutical companies’ profits?
A. Generally, the quantity of markdown given by pharmaceutical companies to pharmacies is prudently calculated to be the least needed to attract buyers to the drug.
B. For many drugs, the trial phase during which prices are lowered is about a month, which is not long enough for buyers to get used to the low price.
C. The rationale of such trials is to keep the new drugs at the top of buyers’ minds and appeal to buyers now using competing drugs.
D. Pharmacies often amass in their storage rooms drugs bought at markdown during trials and then sell these drugs later at regular prices.
E. If some pharmaceutical companies offer trials but other competing pharmaceutical companies do not, the companies that offer trials will lure buyers away from the other companies.
PyjamaScientist
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19 Apr 2022, 01:50
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(D) for me.
So, the conclusion says that the pharma companies can make profits by not giving discounted drugs to the pharmacies.
How could they do that?
If the discounted drugs given to pharmacies sell at higher prices sometime later then the profits gained by the pharmacies are pharmaceutical companies' loss. So, if they want the profits to be thier then they better not sell the drugs at cheaper prices to the pharmacies in the first place. Option (D) shines a light on that explicitly, if the pharmacies are hoarding up the supplies of cheap drugs by the pharma companies and earning profits from them later, then the pharma companies can avoid selling them the cheaper drugs and sell the drugs at the higher price later when the price rises themselves and make "more money".
So, the conclusion says that the pharma companies can make profits by not giving discounted drugs to the pharmacies.
How could they do that?
If the discounted drugs given to pharmacies sell at higher prices sometime later then the profits gained by the pharmacies are pharmaceutical companies' loss. So, if they want the profits to be thier then they better not sell the drugs at cheaper prices to the pharmacies in the first place. Option (D) shines a light on that explicitly, if the pharmacies are hoarding up the supplies of cheap drugs by the pharma companies and earning profits from them later, then the pharma companies can avoid selling them the cheaper drugs and sell the drugs at the higher price later when the price rises themselves and make "more money".
29 Apr 2022, 03:14
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Claim - P.Companies can get more profit by not giving products to pharmacies at lower price.
We need to strengthen the claim. Only D strengthens the claim.
We need to strengthen the claim. Only D strengthens the claim.
