Costs for producing clealung, Managerial Economics

You own a pharmaceutical company that is specialized in the manufacture of medicine for smokers. You newly patented an innovative drug called Clealung, which drastically reduces the smokers' likelihood of lung cancer. You are the only maker of the medicine and there are no same products in the market. Your costs for producing Clealung can be explained by:

2064_aa.png

a) Write down your firm's profits in two ways: (i) as a function of the price per box and (ii) in terms of the quantity.

b) Maximize both profit functions, and illustrate that in both cases ??MR=MC at the optimum. In addition, compute the profit.

 

 

Posted Date: 3/26/2013 3:20:45 AM | Location : United States







Related Discussions:- Costs for producing clealung, Assignment Help, Ask Question on Costs for producing clealung, Get Answer, Expert's Help, Costs for producing clealung Discussions

Write discussion on Costs for producing clealung
Your posts are moderated
Related Questions
Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment

Merits of direct taxes a.  They satisfy the principle of equity as they are easily matched to the tax payers capacity to pay once assessed. b.  They satisfy the principles

they manufacture a single product, specialty curry sauce. They are interested in developing 12 MONTH budget models and want to perform decision analysis on this model. Curryrus.com

Q. What is Technical Economies? The significant technical economies result from the use of specialised capital equipment that comes into effect only when output is produced on

BUSINESS CYCLES Meaning: The business cycle is the tendency for output and employment to fluctuate around their long-term trends.  The figure below presents a stylised

Q. What do you mean by Theory of Firm? Microeconomics especially the theory of firm, assumed importance and attracted considerable attention in the early 20 th century. This sh

Q. Show Normal profit equilibrium? Normal Profits: With the condition of  MC = MR and MC cuts the MR from below, if E is the point of stable equilibrium, output of firm is OM

a.  A major freeze destroys a large number of orange trees in Florida Ans- Since the freeze destroyed a large number of orange trees in Florida the number of oranges the selle


Q. Explain about isocost line? In economics, an isocost line signifies all combinations of inputs that cost the same total amount. Though, similar to the budget constraint in c