Problem
In 2005, the prices for 36 prescription painkillers shot up as much as 15% after Merck yanked its oncepopular arthritis drug Vioxx from the market due to fears that it caused heart problems ("Prices Climb as Much as 15% for Some Painkillers," Los Angeles Times, June 3, 2005, C3). Can this product's exit be the cause of the price increases if the prices reflect a Cournot equilibrium? Explain.
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.