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You are the marketing or pricing director for a large firm. By spending $8.5 million in research and development, your firm has developed a product for treating certain ailments. In addition to the development costs, each set of 30 pills costs you $3.00 to manufacture and distribute. You expect to sell approximately 1 million prescriptions in the US before your patent expires and your sales dwindle to zero. Therefore, total cost per prescription is approximately $11.50. Your international director wants to sell in Canada as well, but price ceilings there limit the selling price to $5 per prescription. Canadian sales will likely be 200,000 prescriptions if you sell at that price. Should you sell your product in Canada? Why or why not?

Reference no: EM131651891

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