Answer:
c. superior to other available products.
Explanation:
When using the differentiation strategy, a business aims to distinguish itself from the competition by offering a product or service that is perceived as unique or better when compared to what is currently available on the market. Therefore, the alternative that best fits this description is alternative c. superior to other available products.
The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%
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.
