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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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A tax that imposes a small excess burden relative to the tax revenue that it raises is.
stiv31 [10]

A tax that imposes a small excess burden relative to the tax revenue that it raises is an <u>efficient tax.</u>

<h3><u>What Exactly Is Tax Efficiency?</u></h3>

The least amount of taxes that are legally required to be paid by a person or a corporation is known as tax efficiency. When a financial choice results in a lower tax bill than a competing financial structure that serves the same purpose, the choice is said to be more tax-efficient.

<u>Tax-Advantaged Mutual Fund</u>

Another approach to lower tax obligations is to invest in a tax-efficient mutual fund, particularly for taxpayers without access to a tax-deferred or tax-free account. In comparison to other mutual funds, a tax-efficient mutual fund is taxed at a reduced rate. Compared to the standard mutual fund, these funds often produce lower rates of returns through dividends or capital gains.

Mutual funds that provide little to no interest income or dividends include small-cap stock funds and passively managed ones, including exchange-traded funds (ETFs) and index funds.

Learn more about the efficient market with the help of the given link:

brainly.com/question/22597940

#SPJ4

7 0
2 years ago
Administrative activities, such as archiving project files, closing out contracts, documenting lessons learned, and receiving fo
antiseptic1488 [7]

Answer:

Administrative activities, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project, are often involved in closing.

Explanation:

A project is any exercise by an individual or group that has been carefully designed to achieve a certain future goal. A project needs to take into a account various strategies for it to actually achieve what was originally set out in the goals. A project that achieves its goals can be described as a successful project. Most undertakers of a project always wish for their project to be successful, since a project always involves investment in terms of finance, human resources and time. The amount of investment in a project depends on the scope and level of complexity of the project. Vast complex projects usually require for them to be broken down into different phases to make them simple in understanding and execution.

For projects to be successful, one needs to find a way in which the resources going into the project are dealt with in such a way that the direction of the project is in line with the project goals. This is what is defined as project management and it has different phases. The phases of project management are;

1. Initiating: this deals with the planning phases of the project where the goals are set and the project needs are determined. This phase deals with determining the procedure for project execution.

2. Executing; once all the project needs have been determined and purchased, they are put to work.

3. Monitoring and controlling: in this stage, the workings of the project are checked if they have attained the standards stated.

4. Closing: in this stage, administrative activities, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project is done.

4 0
3 years ago
Conducting a double-blind study is easier when assessing the effectiveness of _____ compared with _____.
Vilka [71]
Is any answers option 
3 0
3 years ago
What are the requirements for entering the military after high school?
mel-nik [20]

- Citizenship.

- Age Limits. Enlist at 17 with parental consent, or 18 or older without. ...

- Education and Testing. High school diploma or. ...

- Health and Fitness. Pass a physical exam and meet weight limits. ...

- Contact a Recruiter. ...

- Report to MEPS. ...

- Await Orders for Basic Training.

More info can be found at https://www.usa.gov/join-military

8 0
3 years ago
Read 2 more answers
Frank purchased land containing oil reserves for $425,000. He has calculated his cost depletion for the year to be $20 per barre
leva [86]

Answer:

1 of 3.  $52,000

2 of 3. $68,000

3 of 3 Percentage depletion

Explanation:

The percentage depletion rate = 15% of gross income and limited to 65% of the net income

The gross income = $600,000

The operating expense = $520,000

The net income = $600,000 - $520,000 = $80,000

Therefore at 15% gross income, we have;

Percentage depletion rate = $600,000 × 0.15 = $90,000

65% of the net income gives;

$80,000 × 0.65 = $52,000

1 of 3. Therefore since 15% of the gross income ($90,000) > 65% of the net income($52,000), we have

The percentage depletion rate = $52,000

2 of 3. Therefore, he can deduct $120,000 - $52,000  = $68,000

3 of 3 He should therefore use the percentage depletion method to maximize his deductions

We therefore have;

Assuming this is domestic production, the amount of percentage depletion expense is _$52,000_. If he uses this method he can deduct _$68,000_ for tax purposes. He should use the _percentage depletion_ method to maximize his deductions.

6 0
3 years ago
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