A pharmaceutical company Eureka Bio has discovered a Corona vaccine that can be produced at a constant margin cost of $10. The company has entered into off take dosage agreement with Country A and B. Country A has a dosage demand of QA = 200 - PA and Country B has a dosage demand QB = 150 - PB. (a) Suppose that Country A has higher infection rates, determine the price that Eureka Bio can charge Country A and B to prevent a resale between countries. (b) If Eureka Bio is the only pharmaceutical company that was successful in developing vaccine, determine the dosage that will be sold to both countries. What will be the Eureka's profit ? (c) If World Health Orga
A pharmaceutical company Eureka Bio has discovered a Corona vaccine that can be produced at a constant margin cost of $10. The company has entered into off take dosage agreement with Country A and B. Country A has a dosage
(a) Suppose that Country A has higher infection rates, determine the
(b) If Eureka Bio is the only pharmaceutical company that was successful in developing vaccine, determine the dosage that will be sold to both countries. What will be the Eureka's profit ?
(c) If World Health Organization introduces a regulation on the price of dosage, calculate the price, profits and dosage that Eureka can charge.
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