Here is the synopsis of our sample research paper on Highest Price: American Pharmaceuticals. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This paper explores the pros and cons of the high cost of pharmaceuticals in the United States and supports an argument that it is unfair, despite drug company's policies being based on sound economic principals. Statistics are provided on current and future expected costs. Bibliography lists 4 sources. jvHiPhar.rtf
Page Count:
7 pages (~225 words per page)
File: D0_jvHiPhar.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
competitive market. "In perfect competition," Vasquez writes, "the profit would equal zero and the price would reflect the cost" (Vasquez, 2003, 108). Vasquez states that practice is not the same
as theory in economics. She says the normal price of any product includes the "summa . . . cost of research, development, production, distribution, and marketing of a product, plus
the profit, or net income . . . ." (Vasquez, 2003, 108). According to Vasquez, the difference between what a product costs to make and its sales price is referred
to as "consumer surplus," reduced in a competitive market, but not in the drug industry. In the United States, "consumer surplus" is added onto the cost of making a drug
to maximize drug pricing for the purpose of profit. It is the summa cost of pharmaceuticals that have that tripled the household
GDP on pharmaceuticals from 1.4 percent in 1997 to an expected 14 percent of GDP by 2010 Reinhardt, 2001, 139). Drugs costs are 14 percent of all health care costs,
and according to Reinhardt (2001) health care costs are the becoming the largest GDP expense in the household. Reinhardt (2001) feels that
any estimates on the future costs of pharmaceutical may be conservative. He writes that from 1980 to 1998, the "real GDP per capita rose at an average annual compound rate
of 1.86 percent," and if that rate continues, "GDP per capita in 2025 will be 59 percent higher than it was in 2000, but he expects the compound rate to
adjust up" (Reinhardt, 2001, 140). In an international survey, Reinhardt (2001) compared the U.S. pharmaceutical question with other countries and found the following
...