A pharmaceutical company has been the sole producer of a patented drug. As the patent expires, several other firms begin to produce and sell generic, chemically identical versions of the drug. How should the original company adjust its pricing strategy to continue maximizing its profits, and what is the underlying economic reason for this adjustment?
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A pharmaceutical company has been the sole producer of a patented drug. As the patent expires, several other firms begin to produce and sell generic, chemically identical versions of the drug. How should the original company adjust its pricing strategy to continue maximizing its profits, and what is the underlying economic reason for this adjustment?
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