RSS Amplifier

David Friedman’s Substack · Aug 9, 2026

Drugs For Poor Countries

0
Sign in to vote or save

Medical drugs have large fixed costs, the costs of research, development and testing, low marginal cost, the cost of making one more pill. If the company sells the drug at marginal cost everyone to whom it is worth at least the cost of producing the pill gets it but the company never covers the fixed cost; if it keeps doing that it goes out of business.

See it on daviddfriedman.substack.com

Comments

Nothing yet. Say the first thing.

    Sign in to join the conversation.