[Solution Library] Your company has developed a drug called Matrox that is an effective treatment for migraine headaches. You have ust discovered that it can also


Question: Your company has developed a drug called Matrox that is an effective treatment for migraine headaches.  You have ust discovered that it can also be used for organ transplant patients to reduce the risk of organ rejection.  The demand for migraine medications is considerably more elastic than the demand for drugs to reduce the risk of organ rejections.  A study has indicated that the elasticity of demand for Matrox as a migraine medication is -4.0 but as a transplant drug it is -1.5.  The marginal cost is $5 per dose.  Assuming you can price differently for the two different types of customers of the same basic drug what would be the prices in the two markets? Hint Use MR =P (1-1/[e}e).

Price: $2.99
Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document

log in to your account

Don't have a membership account?
REGISTER

reset password

Back to
log in

sign up

Back to
log in