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Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company's revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate the losses; be sure to support your suggestion using economic analysis.
Two fi?rms compete in a duopoly market. Each fi?rm chooses a quantity and the price in the market is determined from the following inverse demand function.
Why does hedging usually take place with a forward contract.
What is the employment rate? B. Suppose the government sets a minimum hourly wage of $8. How many workers would lose their jobs?
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Graphically illustrate the total surplus associated with 2 randomly chosen quantities in the market (put this on two separate diagrams).
Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? .
Illustrate what is the probability that the defense defends the right hand side. Explain in words what the expected outcome will be.
Illustrate the purpose of this optional homework is to learn how specialization and trade benefit all trading parties.
Explain how many hours of leisure does she consume. How many dollars of consumption does she consume.
Why a favorable shock to the production function tends to reduce the price level, P. How could the monetary authority prevent this fall in P.
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
If the marginal cost of planting and harvesting an acre is $7000 per acre for each of the five acres, how many acres should the farmer plant and harvest.
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