If Able Drug Company already has a patent on a drug called drug Z27, then they have the rights to charge it higher than cost of production. They do this so that they would gain profit from the drug that they have patented and to be able to expand their business more with it.
Answer:
The dividends paid exceeded the net new equity raised.
Explanation:
B information power that the best answer
Answer:
Options B and C are correct.
- Marginal profit is negative.
- Profit is positive.
Explanation:
At q = 150
R = 80q = 80(150) = 12,000
C = 0.002(150)3 + 22(150) + 750 = 6750 + 3300 + 750 = 10,800
R > C so first is incorrect.
MR = 80
MC = 0.006(150 x 150) + 22 = 135 + 22 = 157
MC > MR so B is correct.
Profit = TR - TC = 80(150) - 0.002(150)3 - 22(150) - 750 = 12000 - 10800 = 1200
Profit is positive.
Marginal profit = MR - MC = 80 - 157 = - 77
MR is Negative
