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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: AK2004 who wrote (509922)12/15/2003 1:32:53 AM
From: JJL (Hijacked)  Read Replies (2) | Respond to of 769670
 
Suppose we make a slight change to your formula to:

a-b/x(Moron) /square root of idiot x (b+c)/ (Albert impotence level)-US cost gouging = Canadian pharmaceuticals don't screw as much as American



To: AK2004 who wrote (509922)12/15/2003 1:40:38 AM
From: bentway  Read Replies (1) | Respond to of 769670
 
No one forces the drug companies to sell into Canada. The fair thing to do would be for them to spread the development costs among all their customers equally. Instead, they gouge Americans.



To: AK2004 who wrote (509922)12/15/2003 6:05:10 AM
From: JDN  Read Replies (1) | Respond to of 769670
 
I think the responders to your comment DONT understand fixed vs variable cost concepts. Possibly it is because you used formulas which exceed the counting of ones fingers and toes. Here it is in plain english.
Fixed costs are those costs that are FIXED and only move in Plateaus (ie costs remain the same until production is raised to such a level the FIXED portion must increase to support the higher level.
Variable costs are DIRECTLY associated with output. (ie every unit produced has a direct cost associated with it).

The theory is that once you cover your VARIABLE cost any revenue that EXCEEDS the VARIABLE cost goes to offsett the FIXED cost.
Thus, so long as Canada is paying MORE then the variable cost of the drug some portion of that EXCESS is going toward the FIXED cost offsett. So, if they DIDNT sell drugs overseas and too Canada EVEN at reduced prices (so long as those prices exceed variable and selling costs) the USA would have to bear EVEN LARGER PORTION OF THE FIXED COSTS. jdn