Remaining Question Completion Status: 23 17 25 1 7 18 11 13 2 4 points Save Arts QUESTION 1 From the standpoint of an analysis of an industry's structure, what might explain why the pharmaceutical industry has tended to generate attractive returns? Industry revenues have grown as new disease areas have presented themselves, giving firms a. a "growing pie" to compete for. Drug development takes years and may cost hundreds of millions of dollars, which can O b. dissuade potential entrants. Strong patent laws protect any breakthrough, allowing blockbuster drugs to earn billions of dollars in revenues. Buyers (patients) hold little leverage because patients are generally unwilling to gamble Oc with their health, and decision power is diffused-doctors are willing to prescribe, and insured patients generally pay only a fraction of the cost for a drug. All of the above contributive to the attractive structural forces of the pharmaceutical industry. Chick Save and Submit to sa suht Click See All Alone allantes M