Assignment
1. What factors affect the costs of cancer drugs? How?
2. To what extent would increased government involvement in health insurance or drug research affect these factors? If drug companies can charge monopoly prices for certain drugs, why does the government allow them to do so by granting patents on the drug? (A patent is essentially the granting of monopoly status. )
3. What is scarcity? How does the cost of medical therapy relate to the economic concept scarcity?