Elucidate how a profit from selling the drug. this is in, Ask an Expert

Economics

Q. You are the manager of a small pharmaceutical company to receive a patent on a latest drug three years ago. Despite strong sales ($125 million last year) also a low marginal cost of producing the product ($0.25 per pill), your company has yet to Elucidate how a profit from selling the drug. This is, in part, due to the fact to the company spent $1.2 billion developing the drug also obtaining FDA approval. An economist has estimated to, at the present price of $1.25 per pill the own price elasticity of Demand for the drug is -2.5. Based on this information Illustrate what can you do to boost profits? Also Elucidate how all calculations done.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9169502

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