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Share of national prescription drug spending increased
Course:- Business Economics
Reference No.:- EM131099382





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Medicare beneficiaries started to receive outpatient prescription drug benefits beginning in 2006, with the implementation of Medicare Part D. As a result, Medicare’s share of national prescription drug spending increased. Explain how the pharmaceutical companies would respond to this policy change in terms of their R&D activities. What is the economic term used to describe this phenomena?




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