Your firm spent 100 million developing a new drug. It has now been approved for sale, and each pill.
Your established elapsed 100 darling developing a new offal. It has now been prevailing for sale, and each pill costs 1 to fabrication. Your chaffer inquiry suggests that the cost elasticity of require in the general social is −1.1.
a. What cost do you direct the social?
b. What would betide to receipts if you charged twice as considerable?
c. What role does the 100 darling in development costs reproduce-exhibit in your pricing firmness?
d. The Medicaid agency has made a take-it-or-leave-it tender of 2 per pill. Do you accept? Why or why not?