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In: Economics

In Pharmaceuticals & Medicine industry it is very common to observe two phenomenon, patent and price...

In Pharmaceuticals & Medicine industry it is very common to observe two phenomenon, patent and price regulation. Simultaneous existence of these two phenomenon is puzzling for normal consumer. It seems that idea of patent is to allow a company to earn more profit whereas price regulation is to curb on company's greed for profit. Please explain why these two economic phenomenon exist at the same time and what will happen if government eliminates one or both. Only use economic reasoning to explain.

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Rahul Sunny answered 1 year ago
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