Problem
When a pharmaceutical firm discovers a new drug and obtains a parent for the same, the patent laws gives the firm a monopoly on sale of that drug for a certain number of years. But eventually the firms patent runs out and any company can make and sell the drug. At that time, the market switches from being monopolist to being competitive. What should happen to price of a drug when the patent runs out? Explain with suitable diagrams.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.