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which of the following economic characteristics is consistent with a pharmaceutical company?a. low profit margins.b. low business risk.c. low barriers to entry.d. high levels of research and development.

User Cebjyre
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Final answer:

The economic characteristic consistent with a pharmaceutical company is high levels of research and development due to significant barriers to entry like patents and the need for extensive clinical trials. Thus, the correct option is B.

Step-by-step explanation:

The economic characteristic that is consistent with a pharmaceutical company is high levels of research and development. Pharmaceutical companies are known for investing a significant amount of resources into the R&D of new drugs, which is a critical aspect of their business model. This investment is necessary due to the barriers to entry in the market, such as stringent regulatory requirements and the need for extensive and expensive clinical trials to ensure drug safety and efficacy.

Government-enforced barriers like patents are also common in the pharmaceutical industry, protecting new drugs from competition for a certain period, which allows companies to recoup their investment in R&D. Other barriers include established brand names and reputations for quality, which take many years to build.

User Alex Yagur
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