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Economics

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Demand function for Zatab:

Qd = 15.0 - 0.2P
Q = annual quantity demanded
P = wholesale price of one Zatab unit

Production cost per unit: $5
Mirk Lab incurred a $60 million R&D cost a decade ago

1: What wholesale price will Mirk Labs set?

2: How much Zatab will it produce and
sell annually?

3: How much annual profit does the firm make on Zatab?

  • Economics -

    Demand function for Zatab:
    Qd = 15.0 - 0.2P
    Production cost per unit: $5
    Mirk Labs incurred a $60 million R&D cost

    1) What wholesale price will Mirk Labs set?
    2) How much Zatab will it produce and sell annually?
    3) How much annual profit does the firm make on Zatab?

  • Economics -

    what in the world is Zatab? And, what is your question?

  • Economics -

    Zatab is an allergy medication made by MIRK Labs [British pharmaceutical] that enjoys a patent monopoly in Europe, Canada, and USA.

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