You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($125 million last year) and a low marginal cost of producing the product ($0.40 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 $2 billion developing the drug and obtaining FDA approval. An economist has estimated that, at the current price of $1.20 per pill, the own price elasticity of demand for the drug is -1.5. Based on this information, what can you do to boost profits? Explain.
Solved
Show answers
More tips
- C Computers and Internet The Twitter Phenomenon: What it is and How to Use it...
- C Computers and Internet How to Choose a Laptop: Expert Guide and Tips...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
Answers on questions: Business
- B Business Differential Analysis for Sales Promotion Proposal Kankakee Cosmetics Company is planning a one-month campaign for December to promote sales of one of its two cosmetics products....
- B Business Accounts Payable: $19,207 Accounts Receivable: 81,336 Cash: 98,324 Discount on Bonds Payable: 7,000 Sales Tax Payable: 3,512 Inventory: 95,816 Treasury Stock: 30,000 Stock Investments:...
- B Business The account balances for a company are listed below. All balances are as of Dec. 31, 2017, except where noted otherwise Accounts Payable $7,200 Rent Expense $2,100 Accounts Receivable...
- B Business Steve is choosing between two investments, Fruit Company and MonoPower Industries Jan. Apr. Aug. Dec Jan. 2012 2012 2012 2012 2013 Return Fruit Comp. 512 59 $11 $13 $14 16% MonoPower...
- B Business The short-term demand for crude oil in Country A in 2008 can be approximated by q equals f (p )equals 2,067,542p ^.04 where p represents the price of crude oil in dollars per...
- B Business Đường cầu X dịch chuyển là do đâu...
- M Mathematics Suppose a population consists of 85,000 people. Which of the following numbers of members of the population being surveyed could result in a parameter but not a sample statistic?...
- C Computers and Technology Network upgrades have been completed and the WINS server was shut down. It was decided that NetBIOS network traffic will no longer be permitted. Which of the following will accomplish...
- M Mathematics Move the points up and down so that they have a mean value of 3. What happens as you move a point up or down....
- B Business HELP MEE What is a possible style of formatting your company could prefer? A. Justification B. Sans serif C. TXS D. MLA SUBMIT...
Ответ:
Wealth is an abundance of money and if you are good with your savings are a way you can get wealth