mt2011spring

10 points the table below depicts the costs and

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Unformatted text preview: price of French fries (assume that fries and hamburgers are complements). d. UGA increased enrollments of undergraduates who tend to like hamburgers. +* +* ,* ,* -* -* !"#$%&'(&)* !"#$%&'(&)* 1 2. (10 points) The table below depicts the costs and revenues at various stages in the life of a new pharmaceutical drug. Assuming that the discount rate is 10% (per stage), calculate whether it is worthwhile for the firm to develop this drug? Stage 1: Research & Stage 2: Patent Stage 3: Patent Development Protection Expired Cost (millions) 150 10 10 Revenue (millions) 0 200 100 3. (10 points) Assume that the income elasticity of demand for meals purchased at fast food restaurants is - 0.3, while the inc...
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This note was uploaded on 12/12/2012 for the course PADP 6950 at UGA.

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