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Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather than surgery. Recently, however, firms in the medical industry have come under fire by some members of Congress and the press for charging high prices and earning monopoly profits. Do you think cardiac patients would benefit if the government stripped Genentech and other pharmaceutical firms of their patents? Explain.
What difference does it make, if any, if technology is moving very fast in the market so that this game proves to be one-time-only simultaneous play?
contrast two or three key economic factors for each country with the u.s. economy and comment. for example if per
You and your rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of $3.
determine the present worth of 5 annual deposits of 1200 at the end of years 1 through 5 followed by 4 equal annual
. Assume the annual interest rate at 8% per year and the investments and withdrawals of funds are made at the end of each year. How much money you will need in this account right after your last deposit How much do u have to invest each year to rea..
If an economy is in a recession, what would expansionary fiscal policy do?
Consider a simple economy with two individuals, John and Marsha. The economy is endowed with 30 kilograms of cheese and 30 loaves of bread each month. John and Marsha's preferences for bread and cheese are given by their marginal rates of su..
discuss the problems associated with using the unemployment rate as a gauge of labor market conditions. in your answer
Assume that the demand and supply functions for good X are as follows: What is the equilibrium price and equilibrium quantity?
What is the gross demand for consumption by a ICIW tribe member for pineapples in period 1? In period 2? For a GHN tribe member in period 1? In period 2?
Why might some people claim that the breakfast cereal industry is monopolistically competitive but that the automobile industry is an oligopoly? In both cases, about eight to ten firms dominate the industry.
The marginal revenue product of labor is: a. how much labor can be purchased with the revenue from the sale of one more unit of the good. b. how much does the marginal revenue change when you add more labor. c. the same as the marginal revenue produc..
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