Question
A pharmaceutical laboratory produced batches of 1,000 pills per day for three different drugs, A, B and C. Some time later, drug A was
A pharmaceutical laboratory produced batches of 1,000 pills per day for three different drugs, A, B and C. Some time later, drug A was discontinued, now allowing production to be increased by one batch: (i) of drug B or (ii) of drug C. If the new utility function is Determine the values of the marginal utilities of each medicine, if the production levels are q = 3 and q = 5 (batches/day). Interpret the two previous results economically and with these interpretations decide which drug is going to increase in a lot: B or C? P(miles$/da) = 7.99B 0.59b9c +0.8q -
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