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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Related Book For
Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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