Monopolist profit-maximizing price

Assignment Help Business Management
Reference no: EM131348517

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

Reference no: EM131348517

Questions Cloud

Neponset river watershed : Imagine if you were the environmental manager responsible for assessing the value of the Neponset River Watershed. The area of the Neponset River Watershed is 300 km2, and 330,000 people live in the Neponset River Watershed.
Perform a complete dupont analysis of the company : Project: Financial Statement Analysis - In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that your team feels may best assess the company's performance.
Present your objectives and activities as bulleted lists : For this assignment, write or select 3-5 objectives that could be right for the internship that you hope to do. Present your objectives and activities as bulleted lists formatted.
Undervalued or overvalued relative to purchasing power : 1. Was the yen undervalued or overvalued relative to purchasing power parity? 2. Was the Swedish krona undervalued or overvalued relative to purchasing power parity?
Monopolist profit-maximizing price : 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 ..
Calculate the power dissipated by the 12 ? resistor : Calculate the total power dissipated in the whole circuit
What amount should be used as the initial cash flow : Marshall's purchased a corner lot five years ago at a cost of $498,000 and then spent $63,500 on grading and drainage so the lot could be used for storing outdoor inventory. The lot was recently appraised at $610,000. The company now wants to build a..
Statistical metrics like price to book-sales and earnings : Your client is concerned when you recommend two “risky” investments for his portfolio. “Look at the size of those standard deviations!”, he says. Discuss the advantages/disadvantages of relative valuation methods (Statistical metrics like price to bo..
Person perspective on deviance and rationality : Explain how a person's perspective on deviance and rationality influences their perspectives and attitudes towards drug users and policies about the War on drugs.

Reviews

Write a Review

Business Management Questions & Answers

  Creating a perceptual map for the industries

1. Creating a Perceptual map for the industries (Walmart and Target) and at least 4 other competitors including quality and quantity 2. Identifying the trends of Walmart and Target within the SWOTT analysis

  Explain the average job flow time

Explain the average job flow time and the average tardiness and the average number of jobs at the work center

  Organization experiences dramatic growth

When building a new organization or when an organization experiences dramatic growth, leaders must determine the structure and culture of the organization. Although the culture will evolve over time and each individual that joins the new organizat..

  Sufficient in his estate to pay his employees

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

  Gap analysis and business case

Gap analysis and business - DISCUSS EXPECTED BENEFITS OF IMPLEMENTING NEW SYSTEM TO ORTHOSOLUTION AND CONVINCE THEM TO USE IT.

  Why does an entrepreneur need to write a business plan

Why does an entrepreneur need to write a business plan? What should a business plan mission statement include, and how long should it be?

  Perception of efficiency and discipline inherent

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?

  Waste-management1 consider the following hierarchy of waste

waste-management1. consider the following hierarchy of waste management technologies in decreasing order of

  Develop a hypothetical design plan

Develop a hypothetical design plan

  Value of beta for coca-cola funding for investment

value of beta for coca-cola funding for investment projectspart iusing yahoo finance find the value of beta for your

  Evaluate the effectiveness of a student or business group

Evaluate the effectiveness of a student or business group you have been involved with in your personal and/or business life in terms of diversity and answer the following discussion questions: How do you and how will you deal with others who do not..

  Self interests of management conflict with the interests of

self interests of management conflict with the interests of shareholders?do you think the self interests of management

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd