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A. The UpSmith Pharmaceutical Corporation announced the successful development of a vaccine that can prevent certain forms of cancer. The cost of each dose of

A. The UpSmith Pharmaceutical Corporation announced the successful development of a vaccine that can prevent certain forms of cancer. The cost of each dose of the vaccine is inexpensiveas low as $1 by some estimates. The retail price of the vaccine per dose, however, is $100.

  • UpSmith defends this high price as a way to recover research and development efforts connected with the cancer vaccine that spanned over 20 years.
  • Is the firm correct in incorporating these R & D expenditures into the vaccines sales price?

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