Remove Aggregate Demand Remove Development Remove Fixed Costs
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The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

A drug company must incur a large fixed cost to do the basic research, so it has strong incentives to predict what the demand for the drug will be if its research succeeds. The higher the market demand for a drug, the greater the probability that at least one drug maker conducts basic research. and in developing nations.