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mart [117]
2 years ago
5

Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair.

Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company’s product at the current price is 1.4, what would you advise the company to do?
Business
1 answer:
bogdanovich [222]2 years ago
8 0

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

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Len [333]

Answer:

The correct answer is: <u>Is it balanced?</u>

Explanation:

This question based on ethics would be the most appropriate to assess these situations. Because when you confront your friend that it would not be fair and ethical for him to share an article written by him to be used as if you had written it, he responds to you with behavior that you consider unethical, but in these situations there is no balance comparison, as they are different situations.

Ethical issues seek to solve conflicting problems and dilemmas.

5 0
3 years ago
Sheffield’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1
larisa [96]

Answer:

Company Save  $37000 by Buying

Explanation:

given data

make component part = 100 units

Direct Materials = $122000

Direct Labor = 34000

Variable Overhead = 55000

Fixed Overhead = 30000

purchase the component = $200000

fixed costs = $4000

to find out

make or buy decision

solution

first we find here Total Cost for Making component part

total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1

put here value

total cost for make =  $122000 + 34000  + 55000 + 30000

total cost for make = $241000

and

now we find here Total Cost for buying component part

total cost = Purchase Price + fixed costs   ............2

put here value we get

total cost for buying = $200000 +  $4000

total cost for buying  = $204000

so

we can say Company Save =  $241000 -  $204000   = $37000 by Buying

5 0
3 years ago
Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent contr
PilotLPTM [1.2K]

Answer:

Which of the following is most likely to be true?

A

Explanation:

A) It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control

4 0
3 years ago
What is a table in economics and state 5 characteristics of a table​
Luba_88 [7]

A table is a systematic arrangement of data implementing columns and rows to display information which make it easier for better understanding.

Table number: A table should always be numbered for easy identification

Title of the table

Stubs: These refer to the headings of horizontal rows.

Captions: these refer to the headings of vertical columns

Clear, to the point and a suitable font/ size for the text. Information must be inserted in the same format into the appropriate cells

3 0
2 years ago
Small business owners usually invest little money into new marketing strategies because
aleksandrvk [35]

The answer is:  many small business owners invest money into other areas of the business.

Small business usually still struggle in paying all the necessary expense for daily operation. So they cannot afford the marketing strategy that require a lot of capital (such as  magazine, billboards, television, etc.).  Business start to put more into marketing strategies when it inteded to be a player in a large market.

6 0
2 years ago
Read 2 more answers
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