Vetpharm has historically produced and sold drugs

Assignment Help Microeconomics
Reference no: EM13336681

VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that that at the current per dose price, the elasticity of demand on the part of animal owners is -2.0. The research also estimates that at this price the elasticity of demand for human use would be -.2. The current price is $5.00 per dose. If the MC of production is $1, what should the company do?

a. reduce animal price; reduce human price.
b. raise animal price; raise human price.
c. reduce animal price; raise human price.
d. raise animal price; reduce human price.

Reference no: EM13336681

Questions Cloud

What is the centripetal acceleration of the wheel rim : A wheel with a radius of 20 cm rotates constantly counter-clockwise once every 5 s. What is the centripetal acceleration of the wheel rim
Evaluate the partial pressure of each gas -black : Calculate the partial pressure of each gas -black, gray and white- if the total pressure inside the following container is 720 mmHg
Determine the torque that acts on the loop : The plane of a 6.0 cm × 8.0 cm rectangular loop of wire is parallel to a 0.16-T magnetic field. The loop carries a current of 6.8 A, What torque acts on the loop
Define the ionization energy of an atom composed of a proton : Use Coulomb's law to calculate the ionization energy in kJ/mol of an atom composed of a proton and an electron separated by 80.0 pm
Vetpharm has historically produced and sold drugs : VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that that at the current per dose price, ..
How many liters of solution can be theoretically purified : Make sure you preview your pdf file prior to submitting it. Check the cover sheet, header on each page, portrait orientation of plots and schematics, legibility, and single file submission with correct page order.
Explain one-fourth of the cancer deaths are from lung cancer : Consider the following approximate figures relating to cigarette smoking and cancer. The death rate in the US population of 270 million is 15 deaths per 1000 persons per year. One-fifth of these deaths are from cancer and one-fourth of the cancer ..
Find the radius of a stationary orbit : a stationary orbit is done with a period equal to the time it takes the planet to revolve one time so that the satellite appears to remain at the same point in the sky all the time. Find the radius of a stationary orbit
What is the annual worth of the two machines : An engineer uses an economic analysis to determine which of the two machines to purchase. All the machines that are being considered are capable of performing the same task. Assume that the minimum attractive rate of return is 12% compounded m..

Reviews

Write a Review

Microeconomics Questions & Answers

  How responsive to demand is each in the market period

How responsive to demand is each in the market period and describe what a manufacturer of each product might do in the short run to increase production.

  How the egg breaking rampage affects egg prices

Would you consider the demand for eggs to be elastic or inelastic and illustrate and explain with a diagram how can the Government intervene and correct this situation

  Why would the govt impose a price which losses of efficiency

Explain the concepts of consumer surplus and producer surplus, and then use these to demonstrate that a price ceiling is less efficient than equilibrium in a supply and demand analysis. Articulate why the price ceiling results in either a shortage..

  Define groups planned investment functions

1. If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions 2.Are stocks of ..

  Select an example of a company that you know practices

In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real compa..

  An increase in the price of beef on one’s decision to buy

A change in the meeting time of the introductory one’s decision to go swimming economics course from 11:00 A.M. to 7:30 A.M. on one’s decision to attend the lectures

  Shift the aggregate demand schedule to the left

how can an economy that is below its potential output level attain equilibrium at potential output and shift the aggregate demand schedule to the left?

  How would to consume if given a cash gift of equal value

In a situation in which a gift certificate leads a consumer to purchase a greater quantity of an inferior good than he or she would consume if given a cash gift of equal value. Is this always the case. Explain.

  Why the market for computer chips isnt perfectly competitive

it's dominated by two firms, AMD and Intel. Yet price competition between those two firms is fierce, driving their profits down. Why is there greater price competition between rival computer chips than between rival computer operating systems

  What premium should the insurance company charge each year

A private pilot wishes to insure his airplane for $200,000. The insurance company estimates that a total loss may occur with probability 0.002, a 50% loss with probability 0.01, and a 25% loss with probability

  Determining competition and pricing

How does competition affect profits and prices? What causes some firms to enter an industry, and others to leave it?

  What does economics have to say about global warming

Using concepts used just in Microeconomics(and ignoring any that you might think relevant from Macroeconomics), what does economics have to say about global warming. Is the lesser role for he market and of competition in China.

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