Compute 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. Compute the price, output, and profit contribution if the product is not certified.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9219831

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