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sveticcg [70]
3 years ago
10

Recently, Pfizer and Allergan – the makers of Viagra and Botox, respectively – initiated a $160 billion merger. Pharmaceutical c

ompanies tend to spend a greater percentage of sales on R&D activities than other industries. The government encourages these R&D activities by granting companies patents for drugs approved by the Food and Drug Administration. For instance, Allergan spent large sums of money developing its popular wrinkle-removing neurotoxin, Botox, which is currently protected under a patent. Botox sells for about $15 per vial.Calculate the Lerner index if the marginal cost of producing Botox is $1.50 per vial.
Business
1 answer:
Lilit [14]3 years ago
3 0

Answer:

Lerner index for Botox = 0.9

Explanation:

The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P

Lerner index for Botox = ($15 - $1.50) / $15 = 0.9

0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.

The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.

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  • The implementation phase in any closure process entails putting the project plan into action.

The project manager often coordinate and direct project resources to align with the objectives of the project plan.

  • The closing phase of project management is known as the final phase of the project lifecycle.

This process makes sure that work is completed based on to the project plan and scope.

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Answer:

this is the answer

Explanation:

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Lyla faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very
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D) publicity to help create a positive image for her firm and its products

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