Study guide ex: The manager of a pharmaceutical company that received a patent on a new drug three years ago. With ($150 million last year) and a low marginal cost of producing the product ($0.50 per pill), your company has yet to profit from selling the drug. This is partly because the company spent $1.7 billion, developing the drug, and obtaining FDA approval. An economist has estimated that the current price of $1.50 per pill, the own-price elasticity of demand for the drug is -2. Based on this info, what can you do to boost profits? Explain your answer.