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After lecturing on the concepts of opportunity cost or normal profit, the instructor plays the story "RX Drug Costs," which was broadcast on the National Public Radio news program All Things Considered. Two individuals are interviewed in the story: a spokesman for the public interest group Public Citizen, who argues that drug companies overstate the costs of drug development, and a spokesman for the drug companies who claims they do not.Much of the difference in the estimates of how much it costs to develop new drugs is due to foregone earnings on the money invested in drug research. The Public Citizen spokesman argues that the foregone earnings should not be included, while the representative of the drug companies say it should. The story can be used to discuss whether firms should consider the opportunity costs of investments in research and development and the concept of normal profit.

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