What is the shortest patent length required

Reference no: EM131132921

Patent for NoSmak. A potential new drug, NoSmak, could cure lip-smacking with one dose, but research and development would cost $80 million. The monopoly profit (earned while a single firm produces the product) will be $10 million per year. After a patent expires, the original developer of the drug will have sufficient brand loyalty to earn $3 million per year for another 10 years.

a. What is the shortest patent length required to induce a firm to develop the drug?

b. How would your answer to part (a) change if you ignore the profit earned after the patent expires?

Reference no: EM131132921

Questions Cloud

Does the singleprice policy maximize the airline s profit : Does the singleprice policy maximize the airline s profit? If not, how should it change its prices?

Situation that occurs when check is returned to a depositor : a situation that occurs when a check is returned to a depositor because the writer of the check did not have a bank available balance equal to or greater than the amount of the check?

Write a brief essay outlining the basic tenets : Write a brief essay outlining the basic tenets and origins of liberalism - identifying which of these systemic changes you believe most radically changed European life

Que está evaluando el potencial de expansión : CHB, Inc., es una compañía bancaria que está evaluando el potencial de expansión en una región de 13 condados en la parte suroeste del estado. La ley estatal permite establecer sucursales en cualquier condado que se encuentra junto a un condado en..

What is the shortest patent length required : How would your answer to part (a) change if you ignore the profit earned after the patent expires?

Communicate and persuade others during a negotiation : The purpose of this assignment is for you to think about personal power type and how it can influence our ability to negotiate, communicate and persuade others during a negotiation.

What are the strong points of theory : Define the theory in your own words- what are the main ideas? What are the strong points of theory? What are the weak points?

Situation that occurs when a persons values are in conflict : a situation that occurs when a person's values are in conflict, making it unclear whether a decision is the right thing to do?

What is the belief that a firm is worthy of consideration : the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors?

User Account

All Pages