Calculate the price output and profit contribution if the, Ask an Expert

Economics

A product you produce has the following annual demand function:
P=90-0.003Q

The marginal cost of producing the product is $30. If the firm pays a fee of $50000 to the General Drug Research Council, it can have its product's effectiveness certified. The demand function for a certified product is expected to be P=100-0.003Q

A.) find out the price, output, and profit contribution if the product is certified
B.) should the firm undergo the certification process?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M958091

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