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How might a biotech firm earn monopoly rents?

Question: How might a biotech firm earn monopoly rents?

  • The biotech firm has a patent on a new drug.
  • The biotech firm has a limited distribution network.
  • The biotech firm relies on others to innovate new drugs.
  • The biotech firm has excess production capacity.

Answers: The biotech firm has a limited distribution network.

Conclusion of How might a biotech firm earn monopoly rents?

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