What can you do to boost profits explain

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For a patent on a drug three years ago. Despite strong sales ($200 million last year) and a low marginal cost of producing the product ($0.15 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 $1.2 billion developing the drug and obtaining FDA approval. An economist has estimated that, at the current price of $1.00per pill, the own price elasticity of demand for the drug is -0.5. 

Based on this information, what can you do to boost profits explain?

Reference no: EM131145567

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