Copyright on zatab, What price and quantity will result

Copyright on zatab

Assignment Help Business Economics

Reference no: EM136952

Q. Mirk Labs is a pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab, an allergy medication. The universal demand for Zatab is: Qd = 15.0 - 0.2P where Qd is annual quantity demanded (in millions of units) of Zatab, and P is the wholesale price of Zatab per unit. A long time ago, Mirk Labs acquired $60 million in research and development costs for Zatab. Existing production costs for Zatab are stable and equal to $5 per unit.

(a) Elucidate wholesale price will Mirk Labs set? Explain how much Zatab will it produce and sell annually? How much yearly profit is the firm make on Zatab?

(b) The copyright on Zatab expires next month as well as dozens of pharmaceutical firms are prepared to enter the market with identical generic versions of Zatab. What price and quantity will result once the copyright expires and competition emerges in this market? Elucidate your answer.

Reference no: EM136952

Questions Cloud

Impact of transportation costs : What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.

Acquire the most profit per unit : A farmer determined a natural gas preserve on his property.

Equilibrium business cycle : Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.

Pharmaceutical industry is an oligopoly : Required all pharmaceutical firms to sell their drugs in a competitive market with no ability to patent their break.

Copyright on zatab : What price and quantity will result once the copyright expires and competition emerges in this market. Elucidate your answer.

What is nonassociative learning : What is nonassociative learning and what are the differences between associative and nonassociative learning. In the small stream, you choose a rock and observe many small, flattened worms crawling on it are under surface. You decide that they belong..

Pay matrix and the nash equilibrium : Assume that this is a pass/fail assignment, where the passing grade is low enough that one person can produce a passing paper.

Employees are self-interested : If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring.

What type of cellular injury occurred in this patient : Describe why organisms only reproduce their own kind, and why offspring more closely resemble their parents than unrelated individuals of the similar species.

User Account

All Pages