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As a sales manager for a major pharmaceuticals company, you've been asked to promote a new drug that costs $2,500 per dose. You've read the reports saying that the drug is only 1 percent more effective than an alternative drug that costs less than $625 per dose. Your boss who is the vice president of sales wants you to promote the $2,500-per-dose drug aggressively. He reminds you that if you don't, lives could be lost that might have been saved with that 1 percent increase in the drug's effectiveness. In 30-75 words, discuss what you would do and give reasons to defend your choice
Treasury bonds with the same maturity are yielding 4.7% per year, and the real risk-free rate (r*) is 2.05%. The average inflation premium is 2.25%, and the maturity risk premium is estimated to be 0.1(t - 1)%, where t = number of years to maturity. ..
How many major wireless phone handset manufacturers are there?
Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage ..
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Tax increment financing Zone encourages Economic Development by
Use this website to assess recent trends in direct foreign investment (DFI) abroad by U.S. arms. Compare the DFI in the United Kingdom with the DFI in France. Offer a possible reason for the large difference.
Consider what is "natural" about the natural rate of unemployment. Why might the natural rate of unemployment differ across countries?
What is each project's MIRR? From your answers to Parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected?
Before the war, Iraq had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Iraq’s PPF before and after the war, assuming that the only..
If paid annually, the cost is $1650. If paid monthly, the cost is $150 at the start of each month. What is the rate of return for buying the insurance on an ann
In some country, the rate of inflation is expected to increase from 2 percent to 5 percent and people fear that the increase will be permanent if the central bank does not take action. In both diagram and text, indicate clearly whether you deal with ..
A firm using two inputs (call them “capital” and “labor”) has an efficient combination of capital and labor levels when:
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