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A pharmaceutical company is a monopoly in Alzheimer's disease drugs and faces the following inverse demand curve:
, where α is the level of advertising. Its marginal production costs are constant at m.
(a) Show in a diagram what happens to its price, revenues and production costs if it raises advertising from zero to one unit.
(b) Use the diagram in (a) to discuss under what condition is advertising by this monopoly profitable?
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A study of a new anti-depressant drug took a sample of 10 individuals with high depression screening measures (DSM) and gave them the drug for three months. At the end of the thre
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1.) Two dice are rolled and the sum is calculated. Let X represent the sum of the two dice. Construct a probability distribution expressing probabilities in fractional form. 2
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