b = (350 – 420) / (20 – 25) = -70 / -5 = 14 Using: P = 25‚ Qs = 420 420 = a + 14 * (25) 420 = a + 350 420 – 350 = a Therefore a = 70 and the demand function would be: Qs = 70 + 14 * P b) Graph Showing Equilibrium Price Figure Note: From the graph above the equilibrium price is approximately $22.50 c) Economically speaking‚ the goal of a company is to maximize profit‚ and maximizing profit is not usually the same thing as maximizing revenue. Therefore‚ while it may be appealing to
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PHARMACEUTICAL INDUSTRY ANALYSIS Industry Background: The total industry can broadly be classified into two categories. These are a) Patent Medicines b) Generic Medicines Patent medicines are the products that are invented by the company‚ who have their own research team working on their own laboratories. These products are patented for many years to enjoy the monopoly market. After years of business the formulation is sold in the market so that others can go into mass production. Generic
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Health economics - The Primer This series of articles will introduce readers to the emerging field of health economics. We will review how health economics influence decision making process in health care and the basic tools used in health economics. * 1. The Role of Health Economics * 2. Cost of Health Care * 3. Should Oncologists Care About Cost-Effectiveness Analyses? * 4. Classification of Health Economic Analyses * 5. Health Economics Research: Cost Utility Analysis And
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associated with high price causes decline in the value for money. It exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon. Ans: Inflation: In economics‚ inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It can be defined as too much money chasing too few goods. When the general price level rises‚ each unit of currency buys fewer
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cost levels. Learning effects and spill overs suggest that the cost of a value activity often declines over time due to the learning or improvements that increase efficiency or due to knowledge acquired from suppliers‚ consultants‚ former employees or reverse engineering. These savings derive from “learning by doing”. According to GHEMAWAT (1985)‚”increased efficiency can be achieved through the successful repetition of numerous tasks by the firm’s employees: thus learning. In this regard‚ costs can
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SUPPLY supply curve - in economics‚ graphic representation of the relationship between product priceand quantity of product that a seller is willing and able to supply. Product price is measured on the vertical axis of the graph and quantity of product supplied on the horizontal axis. In most cases‚ the supply curve is drawn as a slope rising upward from left to right‚ since product price and quantity supplied are directly related (i.e.‚ as the price of a commodity increases in the market‚ the
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[Type text] TEA INDUSTRY IN INDIA By‚ Snehal Zarekar Abm09024 Tea Industry in India ‚ IIML Page 1 LETTER OF TRANSMITTAL February10‚ 2013 To‚ Prof. M.K. Awasthi (Associate Professor) Indian Institute of Management Lucknow‚ India Sir‚ enclosed is the project report on “Tea Industry in India”‚ which you authorized me to prepare for Agribusiness environment Course in Term 3. Sincerely Yours‚ Ms. Snehal Zarekar Abm09024 TEA INDUSTRY IN INDIA Index
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necessary for the movement of passengers of goods. Answer. . Q9. The advertisement which is used to inform customers about a new product or feature & to build primary demands is known as: Answer. . Q10. An art that predicts the livelihood of economic activity on the basis of certain assumptions. Answer. . Section A (Part-2) Q1. Write a note on importance of consumer behavior for a business firm. Answer: . Q2. Define the term “Price”. Answer: Q3. Distinguish between
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price ceiling of $3 will result in a A. B. C. D. shortage of 30 units. shortage of 15 units. surplus of 30 units. surplus of 12 units. 2. In a competitive market‚ the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is A. B. C. D. 6. 7. 8. 9. 3. The buyer side of the market is known as the: A. B. C. D. income side. demand side. supply side. seller side. 4. The law of demand states that‚ holding all else constant:
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Murzakarimova Balzhan Management 343 Q1.6 Which concept—the business profit concept or the economic profit concept—provides the more appropriate basis for evaluating business operations? Why? Businesses i know are there to maximize profit and minimize cost.On this basis‚i think the business profit concept is the most appropriate basis for evaluating business operations because banks‚lenders or creditors will the creditworthiness of such business if loan or any other facility has been advanced
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