A pharmaceutical firm faces the following monthly demands, Ask an Expert

Economics

A pharmaceutical firm faces the following monthly demands in the U.S. and Mexican markets for one of its patented drugs:

QUS = 300,000-5,000PUS

QX = 240,000-8,000PX

where quantities represent the number of prescriptions. Assume that resale or arbitrage among markets is impossible and marginal cost is constant at $2 per prescription in both markets. Monthly fixed costs are $1 million in the U.S. and $500,000 in Mexico.

Find the profit-maximizing prices and quantities in each market. What are the firm's total profits?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92190475

Have any Question?Write your Review or question?

Related Questions in Business Economics

What type of exchange rate is associated with a higher

What type of exchange rate is associated with a higher probability of experiencing a crisis? Why?

Once you have the total product curve plotted with the

Once you have the total product curve plotted with the below data, how do you calculate the average product of labor at different units of labor? And the marginal products of labor? 1 unit of labor=2 outputs per week 2 u ...

How does the percent below poverty level compare to the

How does the "percent below poverty level" compare to the national rate? What factors are causing your county poverty rate to differ from (or equal) the national poverty rate?

A data set amount in dollars spent on books for a semester

a. Data set: Amount (in dollars) spent on books for a semester. Number of classes: 6 91 472 279 249 530 376 188 341 266 199 142 273 189 130 489 266 248 101 375 486 190 398 188 269 43 30 127 354 84 b. Number of classes: 5 ...

There is a proposal for a new special economic zone in new

There is a proposal for a new Special Economic Zone in New Jersey. Based on the other examples of SEZs that we have read about, what are the pros and cons of this policy for various stakeholders?

Ernies utility function isnbspuxnbspy 32xy he has 10 units

Ernie's utility function is U ( x , y ) = 32 xy . He has 10 units of good x and 8 units of good y. Waldo's utility function for the same two goods is U ( x , y ) = 3 x + 5 y . Waldo has 9 units of x and 13 units o ...

Describe how government-supported big business during the

Describe how government-supported big business during the Reagan Era effected the U.S. economy and labor unions.

Suppose the production function for a firm is given by q8l

Suppose the production function for a firm is given by: q=8L +2K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK).

The average number of women in a shelter each night is 250

The average number of women in a shelter each night is 250 with a standard deviation of 75. If the city's capacity is 350 people will there be enough beds to meet the demand 95% of the time? How many women will be in the ...

What is comparative statics analysis and how does it

What is comparative statics analysis and How does it compare with sensitivity analysis ? What is analysis used in finance, accounting, and statistics?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert