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Assume that a pharmaceutical firm knows it can develop a new drug in 12 years at an upfront cost of $300m (incurred in year 1). If the firm undertakes the drug development project, it knows it can earn an annual profit of $200m in each year (starting in year 13) that the drug is under patent.
b. Given the long-term budgetary deficits facing the federal government, some members of Congress have advocated repealing the prescription drug benefit that it created for Medicare beneficiaries in 2003 (i.e. Medicare Part D). If that should happen, how might it affect the firm’s decision to undertake the project?
The price elasticity of demand is: The demand curve for physician office visits is quite inelastic; therefore, a:
What are Value Chain Analysis & describe its significance in MIS? Explain what is meant by BPR? What is its significance? How Data warehousing & Data Mining is useful in terms of MIS?
Identify which of the following are extent decisions. Decide whether to expand an existing product into a new region. George’s T-Shirt shop products 5,000 custom-printed T-shirts per month. George’s fixed costs are $15,000 per month. The marginal co..
The price of an 18-pack of eggs is projected to be $2.40 in 2014. Suppose you’re writing some long-term egg contracts subject to the eventual 2014 market prices and you want to get the most eggs per dollar.
Suppose that Seth's income increases from $400 to $500 per week, causing Seth to increase his purchases of movies from 3 to 4. The income elasticity of movies is:
What is the present worth of this alternative? What is the annual cost of this alternative? What would its present worth be if its life was shortened to 25 years in order to compare it to another alternative of that length?
q. assume that the feds inflation target is 2 percent potential output growth is 3.5 percent as well as velocity is a
Plaintiff shipped to Defendant—Pizza Pride Inc. of Jamestown, North Carolina—an order of mozzarella cheese totaling $11,000. Plaintiff, a manufacturer of men’s clothing in Los Angeles, contracted to sell a variety of clothing items to Defendant, Harr..
Elucidate why are shortages or surpluses more likely with preset costs, such as those on tickets, than flexible costs
Suppose a firm purchases labor in a competitive domestic labor market and sells its product in a competitive international product market that covers the whole world. Domestic producers represent a small portion of the world market and have no influe..
Use the economic perpective to explin why someone who isnormally a ligh eater at a standard restaurant may become somewhat of a gullton at a buffet-style restaurant that chares a single price for all you can eat.
An auto-part manufacturer is considering establishing an engineering computing center. This center will be equipped with three engineering workstations that each would cost 25,000 and have a service life of five years.
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