company has developed a drug called matrox that is an effective treatment for migraine headaches. You have just discovered that it is an effective treatment for migraine headaches. You have just discovered that it can be 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 drug, what would be the prices in the two markets? (hint : use MC=P(1-1/ /e/ for optimal pricing
in Word Problem Answers by

Your answer

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

Related questions

1 answer
asked Apr 30, 2012 in Word Problem Answers by anonymous | 1.2k views
0 answers
asked Apr 24, 2013 in Word Problem Answers by anonymous | 439 views
0 answers
asked Mar 7, 2013 in Word Problem Answers by anonymous | 455 views
1 answer
asked Jun 18, 2020 by anonymous | 1.4k views
Welcome to MathHomeworkAnswers.org, where students, teachers and math enthusiasts can ask and answer any math question. Get help and answers to any math problem including algebra, trigonometry, geometry, calculus, trigonometry, fractions, solving expression, simplifying expressions and more. Get answers to math questions. Help is always 100% free!
87,516 questions
100,279 answers
2,420 comments
732,380 users