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You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($200 million last year) and a low marginal cost of producing the product ($0.45 per pill), your company has yet to show a profit from selling the drug. This is, in part, due to the fact that the company spent $1.3 billion developing the drug and obtaining FDA approval. An economist has estimated that, at the current price of $1.00 per pill, the own price elasticity of demand for the drug is -1.5.
Based on this information, what can you do to boost profits?
A 0.20-kg metal sphere oscillates at the end of a vertical spring.As the spring stretches from 0.13 to 0.21 m (relative to itsunstrained length), the speed of the sphere decreases from 5.3 to4.6 m/s. What is the spring constant of the spring?
Name a specific event to be expected to cause the equilibrium price of ice cream to increase.
Government sometimes restricts international borrowing and lending by taxing them. In a two-period, two-country endowment model, if the Home's position is r^A
Find the equilibrium price and quantity. If the current price of the good is $100, what is the quantity demanded? What is the quantity supplied? How would you describe this situation? Equilibrium? Shortage? Or Surplus? What would you expect to happen..
suppose that new producers enter the market and the supply increases to: Qs = -500 + 10P. What is the new equilibrium price and output level? (g.) Show these changes on the graph
Explain additional ads show the same response, is the bank running an optimal mix of ads.
At any point to the right of the IS curve, total leakages must exceed total injections. If velocity is rising, then the demand for money must be falling. The transactions motive for holding/demanding money is related primarily to the fact that money ..
What is the equation of marginal costs? At what level of output are average total costs at their minimum?
q.denise is thinking about setting up a butterfly garden in her backyard. she estimates that it will cost her 2000 to
If the United States is a net importer of a product that is being subsidized or dumped by Japan, not only do US consumers gain, but they also gain more than US producer lose from the subsidies or dumping. Explain why.
u.s. trucking pays its drivers 40000 per year while american trucking pays its drivers 38000 per year. for both firms
Explain how do we measure income inequality. What problems arise the more unequal a country's income distribution becomes.
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