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Assume that the drug company can negotiate with the US and foreign government(s) and thus tries to implement the two-tier pricing scheme that was described in Lecture 3, with one price for access to the drug, and a second price set per unit of the drug set at the marginal cost of the drug. You may assume that the increase in demand happens at exactly the listed prices. That is, 200 consumers in the foreign market would be willing to pay exactly $60, an additional 25 would be willing to pay $55, 150 more would be willing to pay $50, and so on.
What prices would the pharmaceutical company set? What is the company's profit? Does resale between markets need to be prevented?
why is gdp important? list and explain the four spending components c g i x of gross domestic product. what are some
Traditionally, two% of the citizens of US live in a foreign nation because they are disenchanted with United States politices or social attitudes. In order to test if this prportion has raised since the September 11, 2001, terror attacks, United Stat..
What percentage of the variation of your dependent variable is explained by the independent? d) (10) Suppose the corruption measure was flipped. That is, the least corruption possible is rated a 10, and the highest corruption level is zero. Argenti..
Explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depression.
What is an "oligopoly" and why do they exist? Mention three or four oligopolies whose products you own or regularly purchase.
1. the production possibilities schedule showsa. the resources available to the economy.b. the maximum combinations of
If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?
Jane receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by the utility function U(D,F) = 10DF. In addition, the price of a day spent traveling domestically i..
The Wall Street Journal reported that recent law school graduates were having a very difficult time getting jobs in the legal profession. Many law schools said that ten to 20% of their graduates still had not found jobs.
The WSJ recently reported that Juniper Networks plans to offer its more than 1000 employees opportunity to reprice their stock options.
To what effect (income or substitution) do you attribute the change in utility levels between part a and part b?
Include how the necessity of a good and the availability of substitutes affect the price elasticity of demand in case of gasoline as a commodity.
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