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US pharmaceutical industry

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Can you please assist me with answering the following question relating to the "pharmaceutial industy". Any citations should be from US sites/books/articles if possible.

Relate the issues of ease of market entry and exit, and at what level of production will a firm seek to maximize profits?

How does this level compare to other possible markets structures?

Thank you.

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Solution Summary

The USA pharmaceutical industry is characterized. The expert relates the issues of ease of market entry and exit and what the level of product will a firm seek to maximize profits.

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The US pharmaceutical industry is fairly competitive if we take into account all companies operating in the country. This has been made possible by the presence of other pharmaceutical companies from Europe and Japan that offer stiff competition to the two American behemoths, Pfizer (with Wyeth) and Johnson & Johnson (Source: http://money.cnn.com/magazines/fortune/fortune500/2009/industries/21/index.html). These two companies are of approximately the same size, and are in turn more than twice as large as the third ...

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