Question
A market research for Pfeizer revealed that the demand for her new painkiller launched next month is perfectly inelastic. If this is true, marginal revenues
A market research for Pfeizer revealed that the demand for her new painkiller launched next month is perfectly inelastic. If this is true, marginal revenues for the new drug would be:
1) Negative
2) Positive
3) Zero
4) Constant
Pfeizer's CEO didn't believe that market research and asked for a new more extensive one covering all major consuming countries worldwide. She was right as the results revealed a regular demand schedule with a demand elasticity ranging within the [0.8, 2/1] interval. If CEO's objective is to maximize market share getting a dominant market position then at the equilibrium:
1) MR = 0
2) MC = 0
3) MR = MC
4) MR = p
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