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Essay text:
The type of drug and available substitutions generally drive the costs. In this paper, I will summarize a study, "How Increased Competition from Generic Drugs Has Affected Prices and Returns in the Pharmaceutical Industry" and relate the contents of this study to the economic theories described in the fifth edition of the book, Economics by David Colander .
Summary of Article
"In 1984, the Drug Price Competition and Patent Term Restoration Act (also known as the Hatch-Waxman Act) created an abbreviated approval process for generic prescription drugs and at the same time extended patent terms for innovator drugs" (Cook, 1998)...
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