Q. According to a study by Tufts University, cost of developing a new prescription drug was $802 million in 2001. According to study, for every 5,000 chemical compounds that are tested on animals as medications, only five are tested on humans and of these only one is approved for sale. Also, it typically takes 12 years on average for a new drug to reach market. In addition, increases in costs of human clinical trials have been increasing at 12 percent per year. Using information given: What is average cost of first do these of a new drug? What about marginal cost of subsequent doses? Is this consistent with behaviour of costs for an information product?