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It is very expensive to do the research to invent a new drug, but the cost of producing the drug once it has been invented is only $1 per dose. Assume the inventor has a patent, which creates a monopoly.
a) Draw a diagram showing the monopolist's profit-maximizing price, quantiy, and profits
b) Explain whether the monopolist's equilibrium results in a the socially optimal price and quantity.
c) Would it be a good policy to impose a price ceiling? If so at what level? Explain.
d) Would it be a good policy to eliminate patents, so any firm can produce the drug? Explain
The manager of a two plant firm needs to decide how much to produce in each plant. According to an economist the demand curve for the firm's product was estimated to be P = 78 - 15Q, Q is equal to the output in plan 1 plus output in plant 2 such t..
At the beginning of year Ann and becky own equally all of stock of Whitman , Inc and S corporation .Whitman generates 120000$ loss for the year ( not a leap year). On 300 day of the year .Ann sells her half of the Whitman stock to her son,Scott .How ..
What are three parts of external environment that affects firms strategic actions?
The union representing employees at Blue Ridge Co. were unable to reach a collective bargaining agreement with management. The union may lawfully stage a strike in which members stop
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What pricing objectives does New Balance seem to employ?- What type of pricing strategy is New Balance using?- What other pricing tools does New Balance employ?
Explain how you made the decision to pursue an education in Business or Finance. Include a summary of expenses related to that decision, such as: cost of tuition, cost of books, the interest you may pay on any loans, and any other associated ex..
The basic purpose of a differentiation strategy is to deliver the product or service for a lower cost than the competition.The basic purpose of a differentiation strategy is to deliver the product or service for a lower cost than the competition.
Needs to read in Net present Value. Company needs to know whether to build the factory based on a pay off table
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mobility in innovative career pathstraditional career paths strictly emphasize upward mobility within an organization.
What is the likely impact on Dell's Asian profits of a strengthened dollar? Explain.- What hedging technique(s) can Dell employ to lock in a desired currency conversion rate for its Asian sales during the next year?
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