Monopoly and Technological Innovation in the Pharmaceutical Industry

What type of monopoly does Wellness Pharmaceuticals likely have on their new antidepressant, lexabuzac?

a) Natural monopoly

b) De facto monopoly

c) Government monopoly

d) Technological monopoly

Answer:

The new antidepressant released by Wellness Pharmaceuticals, lexabuzac, is an example of a technological monopoly. Option d) Technological monopoly is correct.

In the pharmaceutical industry, companies often hold monopolies on new medications. A technological monopoly occurs when a company is the sole provider of a product due to their unique technological advancements or innovations. This allows the company to have full control over the production and pricing of the product.

Wellness Pharmaceuticals has likely invested significant resources into developing the technology behind lexabuzac, giving them a competitive advantage in the market. This type of monopoly can be beneficial for the company, as they have the ability to set prices and control the supply of the medication.

Overall, the release of lexabuzac by Wellness Pharmaceuticals signifies their dominance in the market due to their technological advancements, making them the sole provider of this new antidepressant.