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VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. The current price is $5.00 per dose for all customers. Market research has revealed that that at the current per dose price, the elasticity of demand on the part of animal owners is 3.0 (in absolute value). The research also estimates that at this price the elasticity of demand for human use would be .9 (in absolute value). If the MC of production is $1, what should the company do?
a. reduce animal price; reduce human price.
b. raise animal price; raise human price.
c. reduce animal price; raise human price.
d. raise animal price; reduce human price.
Most people spend some of the time in the majority and some of the time in the minority, but overall they consider themselves to be one or the other. Determine whether or not you are going to consider yourself a minority or majority for this question..
Equivalence of moving average and exponentially weighted moving average control charts. Show that if l = 2/(w + 1) for the EWMA control chart, then this chart is equivalent to a w-period moving average control chart in the sense that the control l..
Illustrate what mix of central bank bond purchases also higher government spending is required to rise income by $6,000 without changing the interest rate
the manager wins with a payoff of 20, and the auditor loses with a payoff of - 20 . If the actions don't match, the auditor wins with a payoff of 20, and the manager loses with a payoff of - 20. Diagram this game and comment on the equilibrium.
Loan amortization and EAR You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 11% with interest paid monthly. What will be the monthly loan pa..
Mr. Sansome withdrew &1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock for $1207. In the savings account, he would have received an interest rate of 3%, compounded quarterly. He would like to compu..
Guest Corporation issued (sold) 1,000 shares of its no par common stock for $110 per share. The bylaws established a stated value of $100 per share. The transaction is recorded as an increase in contributed capital of a. $ 100,000. b. $ 110,000. c. $..
Select a Government Regulation. Identify a particular government regulation of your choosing that in your opinion has either been successful or a failure. Briefly state the original purpose of this regulation and whether it has changed over time. The..
In recent years, there have been significant increases in US money supply. How does the Federal Reserve "increase" the US money supply in the most active way?
American-based businesses become more global every day. With changes in national and international demographics, we are seeing many American businesses participate in the global workforce.
If at its next policy meeting the FOMC decreases its target federal funds rate, Describe the open market operations the Fed would enact to achieve a lower federal funds rate. Explain the effect this policy action is likely to have on the exchange rat..
Given the demand curve P= 2,000 – 2Q and marginal costs of MC = 1,100 + 2Q, the firm’s profit will maximize at equilibrium price and output of: Based on the demand and cost function in previous question, in a two-part tariff pricing strategy, what is..
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