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When patent protection expires for a pharmaceutical company, it forces changes within the company to adjust its business strategies from a monopolist position to a position that is much more competitive. With that premise, answer the following questions:
• Do the variable costs and marginal costs vary much between these two market positions for a specific drug? Why or why not?
• What happens to the average total cost curve for the same (now generic) drug with regards to the original (prescription) manufacturer and the new generic manufacturers?
Statements best describes the twelve Federal Reserve Banks - When the Federal Reserve buys U.S. government securities on the open market. this tends to bank reserves and the money supply
What initially appears to be the problem? What really is the problem(s) in this case? How easy is it to switch suppliers? Why do firm’s single source contracts? What does it mean to get to the root cause of a problem?
A proposal has been made for improving the downtown area of a small town. The plan calls for banning vehicular traffic on the main street and turning this street into a pedestrian mall with tree plantings and other beautification features.
Mr. Smith wishes to sell a bond that has a face value of $1000. The bond bears an interest rate (coupon rate) of 7.5%, with bond interest payable semiannually. Four years ago the bond was purchased at $900. At least a 9% annual return (APR) on the in..
Explain how decisions made at the World Trade Organization might affect domestic policy. How might domestic policy affect decisions at the World Trade Organization? Finally, tell how important you think the United States’s participation in the WTO is..
A foundation was endowed with 15000000 in july 2010. in july 2014 5000000 was expended for facilities and it was decided to provide 250000 at the end of each year forever to cover operation expenses. The first operation expense is in july 2014. If al..
Compare the supply and demand conditions in both locations. How many people live in each place.
Let’s say the current administration decides to make a college education more affordable, so they establish a price ceiling of $50 per credit hour for community colleges, $75 per credit hour for four year institutions, and $100 per credit hour for gr..
Illustrate what is the level of consumption at the equilibrium level of income.
Patrick chooses to use his time ‘free-time’: (a) working out or (b) reading. Patrick currently has 20 hours a week to allocate to these two activities. It takes Patrick 1.5 hour to work out and .5 hours to read. Draw Patrick's budget constraint and o..
Some personal computer software is sold at special discounts to students. Other software is provided in a less powerful version for students. Why do publishers offer discounts to students? What is the purpose of developing less powerful editions?
Suppose that an excise tax of $2.80 per unit is charged to the buyers in the market of part b. Find the effect on the equilibrium quantity traded and market price. Find the effective (after-tax) price buyers pay. Compare the buyers’ burden from the t..
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