Suppose that an inventor discovers a new chemical compound that can change the color of peoples eyes

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Suppose that an inventor discovers a new chemical compound that can change the color of people’s eyes with no negative side effects. Since she holds a patent on this chemical, she has a monopoly over the sale of the new eye-color treatment. However, she’s an inventor, not a businessperson. Explain to her how she should set the price for the eye-color treatment in order to maximize her profits.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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