Compute the learner index if the marginal cost of producing

Assignment Help Business Economics

Reference no: EM1364633

Suppose the own price elasticity of market demand for retail gasoline is - 0.9 the Rothschild index is 0.6 and a typical gasoline retailer enjoys sales of $1.2 million annually. What is the price elasticity of demand for a representative gasoline retailer's producer?

16 Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 3,025. Case's share of market was 27 percent, while Fiat comprised just 13 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase? Based only on this information, do you think the Justice Department would challenge the merger? Explain.

18 Several years ago, Pfizer and Warner-Lambert agreed to a $90 billion merger, thus creating one of the world's largest pharmaceutical companies. Pharmaceutical companies tend to spend greater percentage of sales on R&D activities than other industries. The government encourages these R&D activities by granting companies patents for drugs approved by the Federal Drug Administration. For instance, Pfizer-Warner-Lambert spent large sums of money developing its popular cholesterol-lowering drug, Lipitor, which is currently protected under patent. Lipitor sells for about $3 per pill. Calculate the Learner index if the marginal cost of producing Lipitor is $0.30 per pill. Does the Lerner index make sense in this situation? Explain?

Reference no: EM1364633

Questions Cloud

Discuss allowance method and direct write-off method : Discuss the allowance method and the direct write-off method of accounting for bad debts. When is the expense for uncollected accounts receivable recognized under each method? Respond to at least two of your classmates' postings.

Policy cycle : select one of these eight stages and identify why this stage is important in the policy cycle.

Write program to enter current value of car : Write a program that asks the user to enter the current value of a car. For a new car, it is the selling price of the car. The program should display the number of years it takes for the car's trade-in value to be below $1000.

Computing overall net operating income : In order to receive $12,000 at the end of three years and $10,000 at the end of five years, how much must be invested now if you can earn 14 percent rate of return?

Compute the learner index if the marginal cost of producing : Compute the Learner index if the marginal cost of producing Lipitor is $0.30 per pill. Does the Lerner index make sense in this situation.

Anatomical terminology of kicking a soccer ball : Describe the joint movements using anatomical terminology of kicking a soccer ball.

Classic airlines scenario : What is the situation and what challenges and opportunities exist? What is the problem and is it worth solving?

Find the velocity of the sailboat : A string with linear density 2g/m is stretched along the positive x-axis with tension 20 N. One end of the string, at x = 0, is tied to a hook that oscillates up and down at a frequency of 100 Hz with a maximum displacement of 1.0 mm. At t = 0s, t..

Taxes and shares : Longhorn Company reports current E&P of $100,000 in 20X3 and accumulated E&P at the beginning of the year of negative $200,000. Longhorn distributed $300,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in L..

User Account

All Pages