(Answered) : Pharmaceutical Industry Highly Profitable 2000 2008 Average Rate Return Invested Capital F Q35302155

The pharmaceutical industry is highly profitable. Between 2000and 2008 the average rate of return on invested capital for firmsin the industry was 22.6 per cent. Put differently, for everyKwacha of capital invested in the industry, the averagepharmaceutical firm generated 22.6 per cent of profit. Thiscompares with an average return on invested capital of 15.9 percent for firms in the software industry, 11.9 per cent forpublishing firms, 11.2 per cent for retail firms, 6.6 per cent forsteel firms, and 1.8 per cent for firms in the air transportationindustry. The high profitability of the pharmaceutical industry canbe best understood by looking at