Diagram showing the monopolist profit-maximizing price

Assignment Help Business Management
Reference no: EM131329870

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

Reference no: EM131329870

Estimate the roi-cost-benefit analysis

Why is it important for trainers to be able to estimate the ROI, cost-benefit analysis, and break-even analysis? Give three reasons why calculating this information will assis

What is the reduction in total costs due to the tax

a. Before the tax was imposed, what was the equilibrium quantity? b. After the tax is imposed, what is the equilibrium quantity? c. How much revenue will the government collec

Budget constraint and marginal rate of substitution

1(a)Define consumer preferences and and give relevant assumptions about consumer preferences giving illustrations. (b) Giving illustrations differentiate between the budget co

Method of dealing with an ethical decision

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

Interorganizational linkage mechanisms

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

Determine the least squares trend-line equation

i. Determine the least squares trend-line equation. ii. Interpret the equation obtained above. iii. Using the least squares trend equation plot the points on the line through

Statements above with the results of poor customer service

Part one: Describe THREE reasons why organizations should provide good customer service. Part two: Defend your statements above with the results of poor customer service. In

Approaches and apply one approach to the decision

Select a decision that CEO Thomas is faced with. Research decision-making approaches and apply one approach to the decision. Prepare a 3-page paper (not including title and

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd