ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine and treatments.
(please use excel/word)
a)- If PFIZER is the sole vaccine provider given the following information, answer the questions below:
Output |
Price/Unit |
Total Cost |
1 |
5500 |
1000 |
2 |
5000 |
1200 |
3 |
4500 |
1500 |
4 |
4000 |
2500 |
5 |
3500 |
4000 |
6 |
3000 |
5700 |
7 |
2500 |
7500 |
8 |
2000 |
9400 |
9 |
1500 |
11400 |
10 |
1000 |
13500 |
- Given the tabular information above find the profit-maximizing output and price also illustrate the same using the two-dimensional labeled diagram. Show the calculation as well. (use excel)
b)- Assume if many firms enter into the business of providing vaccine determine:
- How the demand curve of PFIZER would change and how it would now maximize its profit? The kind of market structure now PFIZER is forced to operate in? Also, illustrate the same using the two-dimensional labeled diagram.
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