Why are firms in the pharmaceutical industry more likely to have market power than firms in the fast food industry?

- They have bigger market share.

Typically, Pharmaceutical industries earned around 1,200 Billion Dollars worldwide. Fast food industries earned less than half of that. They earned around 570 Billion dollars world wide.

This give pharmaceutical industries more market power compared to fastfood industries.

- They have strong relation to insurance industries.

Most Insurance companies cooperated with a specific pharmaceutical industries in order to provide the drugs that covered by the policies. Since most people rely on insurance for their health services, this gave pharmaceutical industry a really strong influence in the market.

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