What can you do to boost profits explain

Assignment Help Finance Basics
Reference no: EM131145567

For a patent on a drug three years ago. Despite strong sales ($200 million last year) and a low marginal cost of producing the product ($0.15 per pill), your company has yet to show a profit from selling the drug. This is, in part, due to the fact that the company spent $1.2 billion developing the drug and obtaining FDA approval. An economist has estimated that, at the current price of $1.00per pill, the own price elasticity of demand for the drug is -0.5. 

Based on this information, what can you do to boost profits explain?

Reference no: EM131145567

Questions Cloud

Find the equilibrium relative price : Suppose that instead of 1,200 workers, Home has 2,400. Find the equilibrium relative price. What can you say about the efficiency of world production and the division of the gains from trade between Home and Foreign in this case?
Describe what makes that decision unethical : Describe what makes that decision unethical. Present an alternative ethical and legal solution to the decision focusing on the organization's responsibility to its stakeholders.
Explain what information in the biologic case would be neces : Consider the pricing of a biologic therapy, and use the following information to calculate the cost per QALY and the incremental QALYs per person. Does QALY analysis consider the cost savings from the biologic therapy? If so, explain how. If not, exp..
What was the number of victims killed and wounded : Provide a detailed overview of the incident. What was the number of victims killed and wounded? What psychological symptoms are exhibited by direct attack victims?
What can you do to boost profits explain : An economist has estimated that, at the current price of $1.00per pill, the own price elasticity of demand for the drug is -0.5. Based on this information, what can you do to boost profits explain?
How does the cost of the first whale produced : How does the cost of the first whale produced with the new mold compare to the cost with the original mold - mold?
What is the difference between probation and parole : What is the difference between probation and parole? What are the advantages of sentencing someone to a community sanction, such as probation, instead of sentencing the person to prison?
Draw the average-cost curve for producing the dvd : The marginal cost of burning DVDs is constant at $2. Draw the average-cost curve for producing the DVD, with quantities up to 100 DVDs. (Related to Application 4 on page 508.)
Describe the project specifically and measurably : Select a hypothetical or real project in your personal life, such as moving from one city to another or buying a house. Describe the project specifically and measurably in terms of scope, budget, schedule, and quality

Reviews

Write a Review

Finance Basics Questions & Answers

  Training program explaining net present value

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock.

  An introduction to accounting theory

Which of the following refers to accounting information that is used by investors, creditors, and other outside parties for analyzing management performance and decision-making?

  Information about value of money

What TVM concept (s) is represented in the situation? What is the value of the money represented by the situation? How did you arrive at the value?

  Briefly name and describe some organizational forms

Briefly name and describe some organizational forms other than corporations that provide owners with limited liability.

  Estimate break even point in units

Hazardous Toys Corporation produces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed expenses are $15,000.

  Explain the difference between the economic and financial

Explain the difference between the economic and financial definitions of business failure.

  No new working capital would be required and revenues and

easy payment loan company is thinking of opening a new office and the key data are shown below. easy payment owns the

  How would this breech affect the valuation of the stock

When a company has a formal Ethics Policy and does something contrary to that policy, what impact might it have on the value of the stock, the employees, investors, regulators, and other stakeholders? How would this breech affect the valuation of the..

  Which would lower the calculated value of the investment

Time lines cannot be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity.

  Limit risk exposure through using forward contract

Describe how a firm's management can limit risk exposure through using  the forward contract. What sorts of forward contracts are available?

  What inflation rate is expected after year 1

However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3%. Assume that expectations theory holds and the real risk-free rate is r* = 2.5%.

  What would be the current market price of these bonds

A client has expressed interest in a ten-year zero coupon bonds with a face value of $1,000. His opportunity cost is 7 percent. Assuming annual compounding, what would be the current market price of these bonds? Round to the nearest dollar.

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