Profit-maximizing prices and quantities in each market

Assignment Help Business Economics
Reference no: EM131380650

A pharmaceutical firm faces the following monthly demands in the U.S. and Mexican markets for one of its patented drugs:

QUS = 300,000-5,000PUS

QX = 240,000-8,000PX

where quantities represent the number of prescriptions. Assume that resale or arbitrage among markets is impossible and marginal cost is constant at $2 per prescription in both markets. Monthly fixed costs are $1 million in the U.S. and $500,000 in Mexico.

Find the profit-maximizing prices and quantities in each market. What are the firm's total profits?

Reference no: EM131380650

Questions Cloud

Whether a person will have heart attack during the next year : Suppose you want to use age and tobacco use statistics to develop a decision tree to predict whether a person will have a heart attack during the next year. What problem would arise?
How are these elements related to the whole work : How do the various elements of the work-plot, character, point of view, setting, tone, diction, symbol, etc.-reinforce its meaning? How are these elements related to the whole work
How your strong points or capabilities can help you : EDU7200- In this forum, you will identify a curriculum issue/support system solution OR an instructional strategy about which you would like to learn more. consider how your strong points or capabilities can help you with these issues.
How could l l bean use classification trees : Show that when there are two classes the maximum entropy occurs when both classes have equal probability and the minimum entropy occurs when one class has probability 1.
Profit-maximizing prices and quantities in each market : A pharmaceutical firm faces the following monthly demands in the U.S. and Mexican markets for one of its patented drugs: Find the profit-maximizing prices and quantities in each market. What are the firm's total profits?
Determine the first node split for the greek yogurt : Show that when there are two classes the maximum impurity occurs when both classes have equal probability and the minimum impurity occurs when one class has probability 1.
Describes how borrowed theory along with the hpm : Borrowed theory are nursing theory borrowed from other disciplines. Nola Pender developed the Health Promotion Model to guide nurses in promotion of wellness and illnesses prevention. The expectancy-value theory and social cognitive theory were ..
Economic growth is shown in the aggregate supply : The business cycle can be shown in the aggregate supply? / aggregate demand model by. Problems related to fiscal policy may include. Economic growth is shown in the aggregate supply? / aggregate demand model by
How could concept of training set be used to improve quality : Use item-based filtering to predict each missing rating in the table.- How could the concept of a Training set be used to improve the quality of the estimated ratings defined by Equations 1 and 2.

Reviews

Write a Review

Business Economics Questions & Answers

  What is anarchy when referring to international relations

What is Anarchy when referring to International Relations? Why is the concept of Anarchy important for understanding the difficulties for international negotiations on environmental issues?

  Connection between the solution to bank instability problem

What is the bank instability problem. Understand the Bryant and Diamond models of bank runs. I want you to understand the quantitative logic of the problem. Explain the connection between the solution to the bank instability problem that we have adop..

  Earth-facing in addressing these environmental challenges

In what ways does the concept of the prisoner's dilemma contribute to our understanding of environmental problems? Regarding global warming, deforestation, and ocean dumping, what are the sources of the problems (political, economic, and social)? Who..

  Gains from trade-opportunity costs of water and dates

You find yourself in a lonely oasis in the desert. The only two things you can produce are either dates or water. In a day you can either gather 100 dates or collect 50 liters of water. And you choose to spend 4 days a week gathering dates and 3 days..

  Nominal GDP of Paradisia quadrupled

Your uncle comes to you with an investment idea. He tells you that the nominal GDP of Paradisia quadrupled over the past year and suggests that you invest there. Unemployment is at 20 percent and inflation over the last year was 500 percent. This opp..

  Q in 1976 the parents of a seven year old boy sued a new

q. in 1976 the parents of a seven year old boy sued a new york hospital for 3.5 million. the boy was blinded shortly

  Illustrate what price should it charge

Suppose instead that the station seeks to maximize its profit from sales of the DVDs. Illustrate what price should it charge. How many DVDs should it order from which supplier.

  How will this affect the costs that forest service incurs

Lightweight personal locator beacons are now available to hikers that make it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness. How will this affect the costs that the Forest Service incurs? (Ch 20 Ind..

  Q1 1 at point e in figure 84b is mp kr greater or less than

q1. 1. at point e in figure 8.4b is mp kr greater or less than mp lw? 2. explain how do you know? 3. use this

  Represents a mandatory government outlay

Which of the following represents a mandatory government outlay?

  What is the cross price elasticity of the demand

Anna consumes good x and good y. Her utility function is given u(x, y) = 100x − x2 + y. Due to the resource constraint, Anna cannot consume more than 100 units of good x. If px = 50, then what is her demand? Calculate Anna’s consumer surplus. What is..

  Little political accountability in judicial decision-making

In many ways, courts are expected to be apolitical institutions of government. In what ways are courts, judges, and justices shielded from political pressures? In whats ways are they vulnerable to political pressures? Are the courts appropriate place..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd