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It is very expensive to do the research to invent a new drug, but the cost of producing the drug once it has been invented is only $1 per dose.
Assume the inventor has a patent, which creates a monopoly.
a) Draw a diagram showing the monopolist's profit-maximizing price, quantiy, and profits
b) Explain whether the monopolist's equilibrium results in a the socially optimal price and quantity.
c) Would it be a good policy to impose a price ceiling? If so at what level? Explain.
d) Would it be a good policy to eliminate patents, so any firm can produce the drug? Explain
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1. You have just been promoted to boss. What are the first five things you should do? 2. What is the best method of dealing with an ethical decision regarding the performance
Draw a chart of the main interorganizational linkage mechanisms (e.g., mergers, strategic alliances, long-term contracts) that WestJet uses to manage resources in the envir
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