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It is very expensive to do the research to invent a new drug, but the cost of producing the drug once it has been invented is only $1 per dose. Assume the inventor has a patent, which creates a monopoly.
a) Draw a diagram showing the monopolist's profit-maximizing price, quantiy, and profits
b) Explain whether the monopolist's equilibrium results in a the socially optimal price and quantity.
c) Would it be a good policy to impose a price ceiling? If so at what level? Explain.
d) Would it be a good policy to eliminate patents, so any firm can produce the drug? Explain
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Bradley goes into bankruptcy under owning $5,000 as wages to his four employees. There is sufficient in his estate to pay his employees however nothing will be left for general creditors
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Why does an entrepreneur need to write a business plan? What should a business plan mission statement include, and how long should it be?
If the Executive Director is at odds with several members of the board over the board members' perception of the efficiency and discipline inherent in the operation of the nonprofit, what can the ED do to address that problem?
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Develop a hypothetical design plan
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