Some argue that prescription drug manufacturers, like Pfizer, gouge consumers with high prices and make excessive profits. Others contend that high profits are necessary to give leading pharmaceutical companies the incentive to conduct risky research and development. What factors should be considered in examining the adequacy of profits for a firm or industry?
Answer to relevant QuestionsWhy is the concept of enlightened self-interest important in economics?“The personal computer is a calculating device and a communicating device. Spreadsheets incorporate the best of both characteristics by allowing managers to determine and communicate the optimal course of action.” ..."It is often impossible to obtain precise information about the pattern of future revenues, costs, and interest rates. Therefore, the process of economic optimization is futile." Discuss this statement.Climate Control Devices, Inc., estimates that sales of defective thermostats cost the firm $50 each for replacement or repair. Boone Carlyle, an independent engineering consultant, has recommended hiring quality control ...Memory chip maker Micron Technology Inc. enjoys strong demand for its products from manufacturers of computers and intelligent electronics. Describe the difference between direct demand and derived demand.
Post your question