What can you do to boost profits

Assignment Help Business Management
Reference no: EM131291484

You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago.

Despite strong sales ($150 million last year) and a low marginal cost of producing the product ($0.50 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 $1.7 billion developing the drug and obtaining FDA approval.

An economist has estimated that, at the current price of $1.50 per pill, the own price elasticity of demand for the drug is -2. Based on this information, what can you do to boost profits? Explain.

Reference no: EM131291484

Questions Cloud

How each of the steps applies to your specific organization : Ascertain how each of the steps applies to your specific organization. Develop a strategy that illustrates how you would address each of the eight stages of change.
How queen victoria and prince albert adopted a middle class : Craft an essay that describes and discusses why and how Queen Victoria and Prince Albert adopted a middle class persona as portrayed in their carte de visites below.
Examine the overall manner in which nonprofit organizations : Examine the overall manner in which nonprofit organizations can benefit from a private social network. Include at least one (1) example of such benefit to support your response.
Analyze the impacts of these negative shocks : Use the IS-LM-FX diagrams to analyze the impacts of these negative shocks. Indicate the impacts on the following variables: Y, i, E, C, I, TB (int he absence of any government policies).
What can you do to boost profits : An economist has estimated that, at the current price of $1.50 per pill, the own price elasticity of demand for the drug is -2. Based on this information, what can you do to boost profits? Explain.
Why is economics considered a social science : What is economics? Why is economics considered a social science? What role does economics play in your personal and professional lives?
Explain market segmentation, pricing or anything else : Explain market segmentation, pricing or anything else that would help position your product for success in the marketplace.Write a page paper stating your USP - unique selling proposition.
What is the primary venue for risk management updates : What is the primary venue for risk management updates? How is a risk watch list relevant? How would you propose to report risks in your project? Are there specific requirements that dictate risk reporting?
Find a problem in managing operations and supply chains : Find a problem in managing operations and supply chains from the real business world?- Identify specific OSCM concepts/tools that can be applied to the problem?

Reviews

Write a Review

Business Management Questions & Answers

  Determining the residual dividend policy

The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?

  Define an entrepreneurial opportunity for company

Define an "Entrepreneurial Opportunity" for company.- Identify the major problems you/or the company you work for wants to address.

  Prepare a two- to three-page paper in apa style sixth

prepare a two- to three-page paper in apa style sixth edition format that describes explains addresses and answers the

  Create a report that reviews the currency and efficacy

What is sexual harassment? Recognising sexual harassment. The law and sexual harassment - what is bullying? Identify bullying behaviours. Discuss bullying and the law.

  Leadership concepts

What effects does the ways in which the leadership concepts, principles, or terms operates in the workplace

  Explain if interest rates were expected to increase

McKinsee Inc. is developing a plan to finance its asset base. The firm has $5,000,000 in current assets of which 20% are permanent and $12,000,000 in fixed assets. Long-term rates are currently 9.5%, while short-term rates are at 7%. McKinsee's ta..

  Explain what informed consent means and why it matters

Explain what informed consent means and why it matters. What does it mean to be procedurally fair? Why is this important?

  What percent of american adults sleep

What percent of American adults sleep more than 8 hours on weekdays? What percent of American adults sleep less than 6 hours on weekdays? What percent of American adults sleep between 6 to 8 hours on weekdays?

  Economic vs aesthetic perspectives environmental issuesa

economic vs aesthetic perspectives environmental issuesa what is an economic perspective on environmental issues?b what

  Absorbed production overheads

In an integrated bookkeeping system, when the actual production overheads exceed the absorbed production overheads. What would be the accounting entries to close off the production overhead account at the end of the period ?

  Illustrate what is the minimum range sample

Assuming that s = 0.15% cannot be reduced and a sample size of n = 64, illustrate what is the minimum range within which the sample average failure rate must be found to justify with 95% confidence the advertised failure rate of 0.5%?

  Which delegation do you think is more likely to succeed

Which delegation do you think is more likely to succeed with the plant? Explain why? Illustrate what information would you need to collect to decide whether to acquire the plant for your industry.

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