Answer:
The company should increase the number of units she is producing
Explanation:
Since the elasticity of demand for the product is greater than one (1.4), it means the demand for the new drug is elastic, meaning the demand for the new drug is sensitive to price – the higher the price, the lower the quantity demanded and the vice-versa. So the pharmaceutical company should be careful of charging higher than the other competitors.
What the company needs to do to increase its revenue is to produce large quantity of the drug in order to earn higher and gain larger market share and probably economies of scale.
For example, If the company produces 400 units of the drug at $2, the revenue will be $800.
To increase the revenue, the company needs to increase its production.
For example, the increases the production to 500 units at the prevailing price of $2, therefore, the revenue will be $1000
Answer:
Promotional adaptation
Explanation:
Promotional adaptation is defined as strategy that is used to sell the same product in different locations using different promotional strategy.
The strategy can be employed in some or all locations where the company operates.
In this scenario AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer does not like to be yelled at.
This helped to match AFLAC'S commercials to the unique needs of the Japanese people.
The intrinsic value of a call option can be calculated by subtracting the strike price from the market price ($108-$110=?). Therefore the intrinsic value of John's call option is $-2 or 0.
Answer: Option (A) is correct.
Explanation:
Correct option: Earn positive profits in the long run.
All the industries that operates in a monopoly, oligopoly and monopolistic market conditions are generally having positive profits in the long run.
These industries can earn positive profits because there are high restrictions on the entry of the new firms. This is the case of monopoly and oligopoly. But in monopolistic competition, there are many firms in the market and the firms in this market condition can have a positive profits in the long run. There are comparatively less barriers on the entry of the new firms.
Answer:Expected value = - 94661.45
Explanation:
The Policy pay out is $95000 ,if a client is in life threatening accident insurance company will loose $95000, if the client is not in a life threatening accident the insurance company will gain $250
Probability (Client is in a threatening accident) = 0.999063
Probability (not in a life threatening accident)= 1 - 0.999063 = 0000937
Insurance Premium = $250
Insurance Payout = $95000
expected value = 0.999063 x (- (95000 - 250)) + 0.000937 x (250)
expected value = 0.999063 x (-94750) + 0.000937 x (250)
expected value = - 94661.21925 + 0.23425 = - 94661.44675
expected value = - 94661.45
