Single price to maximize profits

Assignment Help Business Management
Reference no: EM132316861

Monopoly

Your pharmaceutical company has developed a gene therapy that addresses a rare life threatening condition. The inverse demand function for this therapy is given as: P=$2,000,000 - 10,000Qd is the annual quantity demanded. While development costs were substantial, your marginal costs are just $20,000 per treatment (one treatment needed).

1. If you set a single price to maximize profits, what quantity will you supply each year? ( the marginal revenue function as the same y axis intercept as the inverse dement function but twice the slope. Set MR = MC and solve for Q)

2. What is the price for treatment? (plug your quantity from 1 into the inverse demand function.)

3. If the treatment was priced at the marginal cost to your company, how many treatments would be provided per year?

Reference no: EM132316861

Questions Cloud

Mission of one of boeing aircraft manufactures : Using Abell's model, and other concepts explain the "mission" of one of Boeing aircraft manufactures.
Describe the four building blocks of competitive advantage : Identify and describe the four building blocks of competitive advantage. Provide an example of each building block
Profitability of the commercial aircraft industry : Using the Five Forces model, explain the prospects for profitability of the Commercial Aircraft Industry.
How to price their patented mega-cogs : Cogswell Corporation is considering how to price their patented mega-cogs. It knows that if it prices each widget at $50 then they won't sell any widgets.
Single price to maximize profits : Your pharmaceutical company has developed a gene therapy that addresses a rare life threatening condition. The inverse demand function for this therapy
Evaluate the effectiveness and customer engagement : Evaluate the effectiveness and customer engagement of your campaign posts created in the Week 7 Assignment 2 and the Week 8 Homework Assignment utilizing your.
How do we measure efficiency in economics : How do we measure efficiency in economics? Meaning we are getting more efficient but how is it measured?
What is the value of the autonomous tax ta : Consider the following economy Ca = 1800 ; small c is c = 0.8 ; T = 1200 + 0.20 Y; IP = 1800 ; G = 2000; NX = 600 - 0.08 Y.
What are the values of the autonomous net export : What are the values of the autonomous net export NXa and the autonomous taxes Ta (hint: see the formulas and compare)

Reviews

Write a Review

Business Management Questions & Answers

  Explain approaches to broad spectrum of employee relations

Explain effective approaches to the broad spectrum of employee relations, including career development, fostering ethical behavior, discipline, labor relations, and dismissals.

  Evaluate appropriate business research methodologies

Evaluate appropriate business research methodologies and apply them to support decision-making. Formulate research questions for business decision-making projects. Compare various qualitative and quantitative research methodologies and techniques

  Evaluate the profitability of entering the market

Evaluate the profitability of entering the market

  What changes are needed to make coolburst

What about the company (structure, features, policies, practices, reward system, culture, management style) is stifling creativity and supports creativity at CoolBurst? What changes are needed to make CoolBurst a learning and innovative organization

  Define a set of standards and policies for adding

User Management Policies. Define a set of standards and policies for adding, modifying, and removing users from a database.

  Make education a public good

High school education is a positive externality. When we have public high schools we are trying to make education a public good.

  Company equity multiplier-debt ratio and roe

Norton Company has a debt-to-equity ratio of 1.18, ROA of 12.23 percent, and total equity of $1,484,000. What are the company's equity multiplier, debt ratio, and ROE? (Roundanswers to 2 decimal places, e.g. 12.55 or 12.55%.)

  Create a diagram of the organizational structure

Create a diagram of the organizational structure showing the hierarchy and chain of command. Conduct a capacity analysis of the location(s) and logistics

  How should phoebe deal with her current customers on change

How should Phoebe deal with her current customers about the change? What kind of promotion should she consider in attracting customers to her new location? Be thorough with the responses.

  What are the main points and arguments of the author

What are the main points and arguments of the author(s)? What is your opinion of the article? How can the points and arguments of the author(s) be applied to the lesson in this unit?

  Define the arithmetic mean return and variance

Discuss and explain the arithmetic mean return and variance

  Provision of whs induction and training

1. What are the benefits of the provision of WHS induction and training?

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