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Your company has developed a drug called Matrox that is an effective treatment for migraine headaches. You have just discovered that it can also be used for organ transplant patients to reduce the risk of organ rejection. The demand for migraine medications is considerably more elastic than the demand for drugs to reduce the risk of organ rejections. A study has indicated that the elasticity of demand for Matrox as a migraine medication is -4.0 but as a transplant drug it is -1.5. The current price of Matrox is $10 per dose; the marginal cost is $5 per dose. Should you use a price discrimination scheme for this product in these two markets? If so, how should you price Matrox in each market? If not, why not? Show all calculations.
what is the primary requirement for a market to be competitive is competition necessary for markets to work well why or why not how does competition influence the following: (a) the cost efficiency of producer, (b) the quality of products, and (c)..
a monopolist has determined that marginal revenue is 2.00 and average cost is 1.75. it has also determined that the
What are the firm's maximum profits?
The Labor Market and Minimum Wage
managed care plans tend to lower health care costs yet the level and growth of managed care premiums are similar to
the federal government is planning a hydroelectic project cor a river basin. in addition to producing electric power
consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital to
Prince Sports wants to exploit a favorable trend-the dramatic growth in tennis participation. For example, a recent study by the Sporting Good Manufacturers Association notes that tennis participation in the U.S. was up 43 percent from 2000 to 200..
Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price
Describe the market equilibrating process and compare the demand for food with demand for Starbuck's coffee. Include academic research to support your ideas.
a. it is often suggested that the bank of canada try to reduce the inflation rate to zero. if we assume that
The principal-agent problem arises when the interests of owners and workers diverge. because of diminishing marginal returns. when the interests of owners and workers converge. because of the profit incentive.
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