With a patent on drug Z27, why would Able Drug Company charge customers $7 per 100 units even though its cost of producing 100 units is less than that?

Question

Business

Cesar Clay

1 January, 02:20

With a patent on drug Z27, why would Able Drug Company charge customers $7 per 100 units even though its cost of producing 100 units is less than that?

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Enzo Byrd · Answer 1

If Able Drug Company already has a patent on a drug called drug Z27, then they have the rights to charge it higher than the cost of production. They do this so that they would gain profit from the drug that they have patented and to be able to expand their business more with it.