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Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate the losses; be sure to support your suggestion using economic analysis.
A company operating in a purely competitive environment is faced with a market price of $250. The company total cost function (short run) is
Suppose that, at the last minute, the company decides to purchase the same machinery at the same rate (8 percent), with payments decreasing by $7,500 each year. How much is the first payment?
What is cross elasticity of demand? How can it be used to tell if goods are substitutes for each other or complementary to each other? What is the rationing function of prices? Should health care be subject to this type of rationing? Be sure to comme..
After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pri..
Explain the effects of the increase in global demand for cell phones on the market for cell phones and on an individual cell-phone producer in the short run.
When the competition is intense and the environment is changing rapidly, it is especially important to
The principle of opportunity cost is that
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the book keeping tasks is done manu..
An investor bought a racehorse for $1 million. The horse's average winnings were $700,000 per year, and expenses averaged $200,000 per year. The horse was retired after three years, at which time it was sold to a breeder for $175,000. Assume accelera..
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Read the opening case on Boeing 787s, and research for the updated information on the Boeing 787s. Identify the pros and cons of assembling a plane with many different parts and manufacturers as Boeing did with the 787. Assess whether Boeing’s approa..
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