17. In developing a vaccine for a dangerous new strain of flu virus a pharmaceutical company incurs...

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17. In developing a vaccine for a dangerous new strain of flu virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it to be equal to zero). The pharmaceutical company holds the exclu -

sive patent to the vaccine. You are a regulator who must decide what price the pharmaceutical company is allowed to charge.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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