A pharmaceutical company with a patented drug faces demand curves of Qus =250,000-5,000Pus and QCA =150,000-4,000PCA. Suppose international drug sales are illegal and the marginal cost is 2. What will the company charge Canadian consumers and how much will be demanded? Would a law to make international sales legal help US consumers? What about Canadian consumers? Would the firm holding the patient oppose th law? (no calculations are needed in the last three questions)

A pharmaceutical company with a patented drug faces demand curves of Qus =250,000-5,000Pus and QCA =150,000-4,000PCA. Suppose international drug sales are illegal and the marginal cost is 2. What will the company charge Canadian consumers and how much will be demanded? Would a law to make international sales legal help US consumers? What about Canadian consumers? Would the firm holding the patient oppose th law? (no calculations are needed in the last three questions)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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