When managers have the task of pricing products and/or services, many factors are taken into account. One of these factors include legal requirements that companies have to follow set by the United States and international laws. These laws are set to protect consumers from predatory pricing and discriminatory pricing (Horngren 2011). Predatory pricing is a situation where a company prices its products below its cost of production in order to eliminate competition to the point where the competition has to leave the market due to major losses. Once the competition has been eliminated then the company increases its prices and customers are often forced to buy products at such high prices because competition has been knocked off the scene (Horngren 2011) (Garg, 2011).
We need to make ourselves knowledgeable about all of the effects of prescription medications in order to make good decisions for our overall health because if we do not, then we are merely playing dice with our health just like the users of illegal drugs. Prescription pain medications are used by patients to relieve extreme pain or discomfort. Although pain relievers are legal, increasing the frequency or amount that you use can cause harm to your body that was not originally intended. Pain medications release opiates that act in much the same way as the opiates found in heroin. Opiates can make your body feel relaxed, drowsy, and numb in place of those feelings of pain and discomfort.
Drug companies that test trial medications in foreign nations are not acting ethically. Testing of experimental medications should be done in the host nation where the medications are being fabricated. A major moral difficulty that is being looked at with this is that the foreign countries that these clinical trials are occurring in are not completely taught on the dangers or completely comprehend what they are getting themselves into. For all the reasons mentioned above, I believe the drug companies are not acting ethically and go against the principles of act utilitarianism. Is American industry at too much risk of lawsuits to remain competitive?
Multiple drugs that are highly bound to plasma proteins may compete with binding sites and a drug that binds with a higher affinity can displace another one. The result of this would be an increase in the intensity of pharmacologic action of the displaced drug or even an increase of the risk of adverse effects. Heredity, age, disease, sex, and other physiological conditions may also affect the extent of a drug binding to proteins. Displacement of a drug from its original plasma protein binding site can cause an elevation of free drug concentrations at the tissue receptor sites. The result is clinical toxicity even though the total plasma drug concentrations remain the same.
Few advocates of drug legalization, other than libertarians, propose that heroin or similar opiates be sold to the general public in an over-the-counter mode. In the United States, discussions of legalized heroin have centered on the question of whether it is practical to make the drug available through medical institutions to persons already dependent upon it. The principal difference among adherents is in regards to whether or not dispensing and prescribing should be limited to specialized, licensed clinics or licensed physicians in
* Elasticity of Demand * The demand for disposable diapers should be considered as elastic. This is because a decrease in the price will lead to an increase in revenue. Even though a lesser price is received per unit, enough additional units are sold to more than make up for the lower price. When the prices are lower, people will be more inclined to stock up or to buy bigger packages at one time. They will also be more likely to buy the premium diapers that they do not usually purchase due to the higher price.
As such, physicians are targeted for product promotion by pharmaceutical companies, even when the risks of doing so outweigh the benefits. Drug Companies should not be allowed to personally market drugs to physicians. Product promotion is critical for any large pharmaceutical company. At the same time, because pharmaceutical interventions can monumentally impact human health, promotion of products must follow strict guidelines set by the FDA. Ethical promotion requires pharmaceutical companies to provide exact product facts, without recommending “off-label” use, i.e., promoting a product outside its specified FDA-approved label and guidelines for distribution, handling, etc.
These two products will have a small change in the demand when the price is changed, which means that if the price is raised the demand of the product will not change drastically (fall by much in comparison). Therefore, the total revenue gained by the firm will increase. From the diagram to the right, one can see that when the price increases there is an increase in the total revenue. Therefore, when a product like cigarette or alcohol wants to increase its total revenue, then it’ll be wise to increase its price. Cigarettes and alcohol are inelastic products because they can be said to be ‘necessities’ for some people.
Responding appropriately would not only secure the long preserved relationship but also increase Standard’s profitability. Reducing the price would escalade the already volatile situation because it would lead to increasing demand of price cut by other customers. It is important to note that Standard’s policy is of quality-leadership but not of price-leadership. Opening a channel beyond Joanne for dialogue would be explored. I will consider the following: * Put together a cost-justified solution that truly conveys value-added communication.
Organizations looking to make substantial profits could possibly be willing to push those able to pay hefty prices for organs to the top of lists causing those in need to go without and ultimately die. That situation would be a matter of business ethics and in my opinion goes against moral standards which take priority over other standards, including