1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sasho [114]
3 years ago
13

Firms in the patented pharmaceutical industry earned an average return on net worth of 22 percent in 2006, compared with an aver

age return of 14 percent earned by over 1,400 firms followed by Value Line . Which theory or theories of profit do you think best explain(s) the performance of the drug industry
Business
1 answer:
IrinaVladis [17]3 years ago
3 0

Answer and Explanation:

The following theories of profit best explain the profits of pharma companies:

1. Risk bearing - The theory says the higher the risk, the higher the rewards. The pharma companies take huge risks in inventing a new drug, having trials and the getting FDA approvals.

2. Monopoly - If a new drug is approved, the pharma company gets a patent over it, which means that it will have an effective monopoly on that segment of the market.

3. Innovation - it states that innovation is what keeps a company ahead. And pharma industry is built on innovation. Pharma companies have to continuously find new drugs because once patents run out on existing drugs, there are no profits to be made.

You might be interested in
Listed below are the lengths (in inches) of each snake in the Clarmont Zoo’s reptile house
Elanso [62]
The mode is 50 the most frequent
6 0
2 years ago
A merchandiser:A merchandiser:
Papessa [141]

Answer:

A.Earns net income by buying and selling merchandise.

Explanation:

Merchandiser is a organization or individual which supplies and promotes products to the consumers. Merchandisers buy the merchandise from manufacturer and display it on their place to sale it. The Net value of Purchase price and Selling price is their return. So, They earn the net income from buying and selling of product.

6 0
3 years ago
Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective a
lara [203]

Answer:

Denver Company

Income Tax Expense for the second quarter:

Pre-tax quarter income = $140,000

Estimated tax rate = 24%

Tax Expense = $140,000 x 24%

= $33,600

Explanation:

a) Data:

Quarter    income before tax        estimated tax rate

first                 $100k                          30%

second           $140k                          24%

b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter.  The resulting calculation shows the estimated income tax expense that has to be settled by Denver.  If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.

7 0
3 years ago
A retired athlete built a gym near his house that could be used for free by all the residents in the neighborhood. However, the
zhuklara [117]

Answer:

Tragedy of the commons.

Explanation:

The "Tragedy of the Commons" refers to the phenomenon where People overuse a common resource. It is a situation arise when individual user share resources with much other and demand increase in comparison to the supply of resources, which lead to depletion, destruction, or damage to resources due to overconsumption. It can be prevented by using certain measures like fixing ownership of resources, assigning basic rules and regulations for usage of resources, penalizing for damage, etc.

In the given case, a retired athlete built a gym and made it common and free for neighborhood residents, which lead to overuse of gym facility and that is a tragedy of common arise.

4 0
3 years ago
Ironwood bank is offering a 30 ​-year mortgage with an APR of 6.00 % based on monthly compounding. if you plan to borrow $ 160,0
olga_2 [115]

$160000 x 1.06 = $169600

$169600 - 160000 = $ 9600 per year

$9600 / 12 = $ 800 per month

160000 / 360 month = $ 444.44 per month

800 + 444.44 = $ 1244.44 monthly peyment

4 0
3 years ago
Other questions:
  • A customer buys $100,000 of a new issue 30 year U.S. Government bond at 80. At maturity, the customer will have:
    6·1 answer
  • Business what kind education do you need
    15·1 answer
  • Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s t
    15·1 answer
  • Consider a two-period model of a small open economy with a single good each period. Let preferences of the representative househ
    11·1 answer
  • 1. A new furnace for your small factory will cost $27,000 to install and will require ongoing maintenance expenditures of $1,500
    12·1 answer
  • Xcel when intentional concealment is involved, what course of action is the injured party entitled to?
    8·1 answer
  • 7. Liqin fixes up old cars and sells them to supplement his retirement income. Liqin came across a beat-up 1955 Corvette that sh
    9·1 answer
  • For every A you earn on your report card, your grandma gives you a twenty dollar bill. This is an example of
    8·1 answer
  • Under the accrual basis of accounting, many of the account balance in the ledger at the end of the accounting period are reporte
    5·1 answer
  • Match each cost with the investment type to which it relates. investment advisory fees administrative costs commissions hourly f
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!