1. Estimates of the marginal cost of Daraprim are S100 for a 100 pill bottle. If Turing charges $75,000 per bottle, what is the elasticity of demand that Turing believed it faced? You need to know that (P- MC)/P 1/lel, where le is the absolute value of the elasticity of demand. 2. Estimate a linear demand curve for Daraprim of the form P-mQ +b.
1. Estimates of the marginal cost of Daraprim are S100 for a 100 pill bottle. If Turing charges $75,000 per bottle, what is the elasticity of demand that Turing believed it faced? You need to know that (P- MC)/P 1/lel, where le is the absolute value of the elasticity of demand. 2. Estimate a linear demand curve for Daraprim of the form P-mQ +b.
Chapter1: Making Economics Decisions
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Answer 2nd questions...do not solve 1st questions.
![1. Estimates of the marginal cost of Daraprim are S100 for a 100 pill bottle. If Turing charges $75,000
per bottle, what is the elasticity of demand that Turing believed it faced? You need to know that (P-
MC)/P = 1/el, where le is the absolute value of the elasticity of demand.
2. Estimate a linear demand curve for Daraprim of the form P- mQ + b.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ea94878-6f64-40c1-a16d-23bae1ec48a2%2F99f8c9db-ef85-4ead-9cb1-3dc33537842b%2Fuzsfbkx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Estimates of the marginal cost of Daraprim are S100 for a 100 pill bottle. If Turing charges $75,000
per bottle, what is the elasticity of demand that Turing believed it faced? You need to know that (P-
MC)/P = 1/el, where le is the absolute value of the elasticity of demand.
2. Estimate a linear demand curve for Daraprim of the form P- mQ + b.
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