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Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill costs $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1.
a. What price do you charge the public?
b. What would happen to profits if you charged twice as much?
c. What role does the $100 million in development costs play in your pricing decision?
d. The Medicaid agency has made a take-it-or-leave-it offer of $2 per pill. Do you accept? Why or why not?
How do tradable permits internalize negative externalities? What is its advantages over command and control?
Which of the subsequent companies has recently been used by the federal government for monopoly practices
Project B will return a profit of $2.00 of conditions are poor, a profit of $3.00 if conditions are good and a profit of $4.00 if conditions are excellent. The probability distribution of conditions is as followed.
Which number of interest will be included as the dealer's monthly rate of return on this loan?
The secret to producing more consumption goods in the future is
Marcella operates a small, but very successful art gallery. All but one of the following can be classified as a variable cost arising from the physical inputs Marcella required to operate her business. Which is it?
Identify the strongest two arguments in favor of such a tax and the strongest two arguments against such a tax.
Evaluate the current state of the U.S. economy and explain how a Keynesian, Monetarist, and Neoclassical Theorist would each propose promoting economic growth. Discuss the cause and effect variables that each theory uses to explain business cycles.
For out Back Steakhouse, seating capacity is limited in the short run.
Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C. what are their equilibrium strategies and what is the equilibrium outcome?
If I keep the bond for the full 10 years until it matures, what is the bonds average annual return?
Draw an E-R Data model based on the traffic citation form. Use five entitiesn and use the data itmes on the form to specify identifiers and attributes for those entities. Use the IE Crow's foot e-r model for your diagram
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