Related to Application: Bribing the Makers of Generic Drugs Paying to Keep a Generic Out. Suppose your firm produces a branded drug at an average cost of $1 per dose and a price of $4 per dose. You sell 1,300 doses per day. If a generic version of the drug were introduced, your daily sales would decrease to 600 doses. How much are you willing to pay each day to prevent the entry of the generic version? $☐ per day. (Enter your response rounded to the nearest dollar.)
Related to Application: Bribing the Makers of Generic Drugs Paying to Keep a Generic Out. Suppose your firm produces a branded drug at an average cost of $1 per dose and a price of $4 per dose. You sell 1,300 doses per day. If a generic version of the drug were introduced, your daily sales would decrease to 600 doses. How much are you willing to pay each day to prevent the entry of the generic version? $☐ per day. (Enter your response rounded to the nearest dollar.)
Chapter11: The Market For Pharmaceuticals
Section: Chapter Questions
Problem 1QAP
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Transcribed Image Text:Related to Application: Bribing the Makers of Generic Drugs
Paying to Keep a Generic Out. Suppose your firm produces a branded drug at an average cost of $1 per dose and a price of $4 per dose. You sell 1,300 doses per day. If a generic version of the drug were introduced, your daily sales would
decrease to 600 doses.
How much are you willing to pay each day to prevent the entry of the generic version? $☐ per day. (Enter your response rounded to the nearest dollar.)
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