Suppose Medic Inc. has a patent for a new pill called Relieve, which alleviates Restless Leg Syndrome (RLS) and is approved to sell its products in two separate markets – USA and Canada. The inverse demand function in USA is given by PU = 24 - QU and the inverse demand function in Canada is given by PC = 12 - 0.5QC. Therefore the total revenue function for USA is given by TRU = 24QU - QU2 and the total revenue function for Canada is given by TRC = 12QC - 0.5QC2 . Relive is sold in strip of 10 pills and the marginal cost of producing each strip is $6.00. PU = Price in USA in US dollars; PC = Price in Canada in US dollars; QU = Quantity sold in USA; QC = Quantity sold in Canada. What will be the profit from the US market? a. $72.00 b. $45.00 c. $81.00 d. $0.00
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Suppose Medic Inc. has a patent for a new pill called Relieve, which alleviates Restless Leg Syndrome (RLS) and is approved to sell its products in two separate markets – USA and Canada. The inverse
demand function in USA is given by PU = 24 - QU and the inverse demand function in Canada is given by PC = 12 - 0.5QC. Therefore the total revenue function for USA is given by TRU = 24QU - QU2 and the total revenue function for Canada is given by TRC = 12QC - 0.5QC2 . Relive is sold in strip of 10 pills and the marginal cost of producing each strip is $6.00. PU = Price in USA in US dollars; PC = Price in Canada in US dollars; QU = Quantity sold in USA; QC = Quantity sold in Canada. What will be the profit from the US market?a. $72.00
b. $45.00
c. $81.00
d. $0.00
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