Why Are Patients Who Suffer from Rare Terminal Diseases More

Multiple Choice

Why are patients who suffer from rare terminal diseases more likely to die if the cost of new drug development is about the same for rare and more common terminal diseases?

A) Federal regulations require that drugs for common diseases get developed before drugs for rare diseases.
B) The market is larger for more common diseases,- and so it is more likely drugs would be developed for the common diseases.
C) Drug firms practice perfect price discrimination.
D) Drugs for rare and common diseases can be sold as bundled goods.