answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sveticcg [70]
2 years ago
10

Recently, Pfizer and Allergan – the makers of Viagra and Botox, respectively – initiated a $160 billion merger. Pharmaceutical c

ompanies tend to spend a greater percentage of sales on R&D activities than other industries. The government encourages these R&D activities by granting companies patents for drugs approved by the Food and Drug Administration. For instance, Allergan spent large sums of money developing its popular wrinkle-removing neurotoxin, Botox, which is currently protected under a patent. Botox sells for about $15 per vial.Calculate the Lerner index if the marginal cost of producing Botox is $1.50 per vial.
Business
1 answer:
Lilit [14]2 years ago
3 0

Answer:

Lerner index for Botox = 0.9

Explanation:

The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P

Lerner index for Botox = ($15 - $1.50) / $15 = 0.9

0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.

The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.

You might be interested in
Christie and Jergens formed a partnership with capital contributions of $360,000 and $460,000, respectively. Their partnership a
Orlov [11]

Answer:

Christie's share is $104500 while Jergens share is $48500. Thus, the first option is the correct answer.

Explanation:

The appropriation of net income among the partners will be as follows,

                                              $                   $

Net Income                                          $153000

<u>Less: Salary to Partner</u>

Christie                                                  (66000)

<u>Less:Interest on Capital</u>

Christie                               36000

Jergens                              <u>46000        (82000)</u>

Remaining Profit                                     5000

<u>Distribution of Remaining Profit</u>

Christie  (5000/2 = 2500)                       2500

Jergens  (5000/2 =2500)                       <u>2500</u>

<u />

<u />

Christie's Share = 66000 + 36000 + 2500    = $104500

Jergen's share = 46000 + 2500   = $48500

5 0
2 years ago
Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's woul
Anvisha [2.4K]

Answer:

The answer is: E) None of these.

Explanation:

A foreign national is a person who wasn´t born in the country in which he or she temporarily lives in.

We don´t have enough information to know if Carrie´s Car Care is a wealthy company. Maybe its total sales are just $10,000 a year but they export $2,500.

A multinational corporation usually has branches or subsidiaries. All we know about Carrie´s Car Care is that it makes some money outside the US, but we don´t know how. Maybe they simply export 25% of their products or maybe they are a huge multinational corporation. Not enough information.

The term globalization corporation doesn´t exist. The term corporate globalization refers to very large multinationals that reach all or most of the world´s markets.

6 0
2 years ago
Jackie’s Coffee is a sit-down café with a wait staff that takes customers’ orders. Jackie's competitor, Johnny's Coffee Shack, s
Pani-rosa [81]

Answer:

differentiated by quality/design

Explanation:

In this scenario the two coffee shops have different strategies for sale. While Jackie's coffee is a sit down cafe with a waiter service that takes personalised orders, Johnny's coffee sells at various kiosks it owns.

These two businesses are differentiated by quality or design. Jackie's has more quality because of the personalised service provided to customers.

Jackie uses design of a sit down cafe in one location, while Johnny's business design is to sell coffee at various locations (kiosks)

3 0
2 years ago
The Dahlia Medical Center has 30 labor rooms, 15 combination labor and delivery rooms, and 3 delivery rooms. All of these facili
madam [21]

Answer:

The combination Labour delivery room

Explanation:

Utilization refers to the degree by which available resource                                                                

is being used.

It is given by the ratio of total input to total output

The attached file shows a complete solution

6 0
2 years ago
Walthaus Corporation's standard cost sheet is as follows Direct material Direct labor Variable overhead Fixed overhead 4 feet at
nirvana33 [79]

Answer:

1. U. None of these

2. Variable overhead price variance = $2,000 F

Variable overhead efficiency variance = $4,000 U

Explanation:

Please see attachment.

4 0
2 years ago
Other questions:
  • Julie ling worked as a customer service representative in the billing department of novell, inc. when questions arose about ling
    9·1 answer
  • Whether a deliberate choice by a leader, or ostracized by the organization, __________ are sequestered from the rest of the comp
    15·1 answer
  • A company manufacturing shirts for a department store decides to create a new style of cotton shirt. The company would most like
    11·2 answers
  • Ben and Sam Jenkins formed a partnership. Ben contributed $8,000 cash and a used truck that originally cost $35,000 and had accu
    15·1 answer
  • Merton Company purchased a building on January 1, 2016, at a cost of $364,000. Merton estimated that its life would be 25 years
    10·1 answer
  • On October 1, 2016, Concord Corp. issued $924,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pa
    15·1 answer
  • At the end of the current year, the accounts receivable account has a debit balance of $947,000 and sales for the year total $10
    13·1 answer
  • The municipality of Smallville has arranged to borrow​ $30 million in order to implement several public projects​ (flood control
    11·1 answer
  • Reid Company is budgeting production of 100,000 units of product R for the month of September this year. Production of one unit
    11·1 answer
  • Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175,846, net annual cash flows
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!