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Many large pharmaceutical companies spend billions of dollars every year on the research and development of new drugs. a) (10) Suppose a pharmaceutical company estimates that if they spend $1 billion on the development of a new drug, they can expect to earn $100 million in accounting profit as a result (so their stream of future revenue would be $100 million higher than all of their explicit costs, including the R&D costs). Just based on this information (that this company can expect to earn $100 million in accounting profit from this drug), does this necessarily indicate that this company should develop this drug? What does the decision of whether to invest in this new drug (or another) depend on? Be specific in your answer.b) (5) Some people have criticized pharmaceutical companies for not investing heavily in drugs that could treat debilitating illnesses like Tourette syndrome or muscular dystrophy. Why would pharmaceutical companies be willing to invest more heavily in drugs that treat say, erectile dysfunction or hair loss, than these highly debilitating illnesses? What could the government do to address this issue?
In forecasting, MacDonald's Wing® discovered that when it opened its store to the public, it was able to sell 5,000 parachutes in the first year. Given the equation; y=a+bx. Where 'y' represents the number of sales and 'a' is the number they s..
Demand for a managerial economics text is given by Q=20,000-300P. The book is initially priced at $30.00. Write the demand equation for which the price elasticity of demand is zero for all prices.
Compare and contrast your local utility company with a local farmer (corn, soy bean, cotton, etc.). Why does your utility company always operate with price is greater than marginal cost whereby the farmer attempts to produce where price equals mar..
Explain which bridges you would choose to attempt to use. (Assume you can put one foot on a bridge to see if it collapses before you attempt to cross.)
if current output is such that marginal cost exceeds marginal benefit should more or less resources be allocated to
Normal 0 false false false EN-US X-NONE X-NONE Introduction: Water is a ne..
compare economic development strategies based on import substitutions versus export promotion. your 200 word answer
describe the process by which the market for capital and the market for labor reach equilibrium. what happens to each
Country A has 16,000 units of labor and can produce 2 goods, manufactures and food. A’s producers take 2 units of labor to produce one unit of manufactures and 8 units to produce one unit of food. Country B has 36,000 units of labor and takes 6 units..
roberts new way vacuum cleaner company is a newly started small business that produces vacuum cleaners and belongs to a
the purpose of the discussion board is to allow students to learn through sharing ideas and experiences as they relate
Explain why hyperinflation has such a devastating impact n economies. Explain what it takes to stop hyperinflation Describe the three types of unemployment. What types of government programs would be most effective in combating each type of unempl..
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