How much zatab will it produce and sell annually

Assignment Help Econometrics

Reference no: EM131094919

4.4. Mirk Labs is a British pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab , an allergy medication The global demand for Zatab is
Qd = 15.0 -0.2P

Where Qd is annual quantity demanded ( in millions of units) of Zatab, and P is the wholesale price of Zatab per unit. A decade ago, Mirk Labs incurred $60 million in research and development costs for Zatab. Current production costs for Zatab are constant and equal to $5 per unit.

a. What wholesale price will Mirk Labs set? How much Zatab will it produce and sell annually? How much annual profit does the firm make on Zatab?

b. The patent on Zatab expires next month, and dozens of pharmaceutical firms are prepared to enter the market with identical generic versions of Zatab. What price and quantity will result once the patent expires and competition emerges in this market?

Reference no: EM131094919

Questions Cloud

Trade policy on exchange rate of small open economy : The government of a small open economy wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate). Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reduc..

Two areas of human resource management : This assessment will allow you the opportunity to choose two areas of Human Resource Management that you are interested in, and conduct an in-depth analysis to address specific components within each area.

Goods sold for the following quarter : Wynne Company has a broad range of products it sells in a four-state area. Sales for the four quarters of 2016 are expected to be $448,000, $789,000, $804,000, and $550,000, for an annual total of $2,591,000.

Question regarding the background scenario : You are a project manager for Advancement Corporation, which specializes in providing quality pharmaceuticals to doctors throughout the United States. The company has over 20,000 employees.

How much zatab will it produce and sell annually : The patent on Zatab expires next month, and dozens of pharmaceutical firms are prepared to enter the market with identical generic versions of Zatab. What price and quantity will result once the patent expires and competition emerges in this marke..

Kweschun company makes one of its components : Kweschun Company makes one of its components at a cost of $13.18 per unit at its current production level of 80,000 units per month. This component is used in the manufacture of several other products which are sold to customers.

What risks do you think the project would face : Once identified, develop a communication and engagement plan for your group of stakeholders. Consider questions such as what communication tools would you use, how often would you communicate, what are the key messages you need to share, have you ..

Eliminated the need for the money markets : Explain why banks, which would seem to have a comparative advantage in gathering information, have not eliminated the need for the money markets.

Contents of the scenario by writing notes : You explain that these issues have been discussed with the entire department staff meetings. The topics of being punctual, and not abusing flexible scheduling in the department, and thought your message was clear. The employee storms out of the pe..

User Account

All Pages