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You work for a drug manufacturing companythat holds a patent on Hair Grow, the world most effective drug for restoring hair. Your job is to analyze the pricing and investment decisions facing the firm. Your marketing group estimates that Hair Grow has the following demand curve:
P = 101 - 0.00002Q
where P is measured in dollars and Q is measured in the number of pills a year. You have this patent for another five years.
(a) Your marginal cost for producing a Hair Grow pill is $1. What is the profit-maximizing price and quantity? What is your profit?
(b) Suppose that your production facility can only produce 1,000,000 pills per year. What is your optimal price and quantity given the production constraint? What are your profits (assume there is no fixed cost)?
Suppose that you could increase the capacity of your plant to 3,000,000 pills per year in a two-year period for a cost of $30,000,000.
Find out the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $.375 per square foot.
Alchemy allows the other firms to sell as much as they wish at the established price and supplies the remainder of the demand itself.
Assuming other countries do not change their own trade policies, what would be the impact on the value of the dollar relative to other currencies? What would be the effect on the jobs in U.S. industries?
illustrate what price should it charge and how many DVDs should it order from each supplier.
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illustrate what way is Per Capita GDP a better measure of economic well being than GDP. How does this relate to economic problems in the undeveloped world.
Illustrate what is the supply of dollars in the market for foreign-currency exchange. Write down your answer since you will need it to answer the next question.
Clarify what happened to the profit maximizing output rate when input costs were increased.
Explain how difficulty will it be for the owner to plan for this new competitive threat.
Illustrate what trends did Nokia pursue as it designed mobile phone products in the late 1990's.
Give a detailed explanation about Elucidate how the engineer's income generation as described above affects GDP
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