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Suppose Medic Inc. has a patent for a new pill called Relieve, which alleviates Restless Leg Syndrome (RLS) and is approved to sell its products
Suppose Medic Inc. has a patent for a new pill called Relieve, which alleviates Restless Leg Syndrome (RLS) and is approved to sell its products in two separate markets - USA and Canada. The inverse demand function in USA is given by Pu= 24 - Qu and the inverse demand function in Canada is given by Pe=12 - 0.5Qc. Therefore the total revenue function for USA is given by TRy = 24Qu - Qu2 and the total revenue function for Canada is given by TRC = 120c-0.5Qc Relive is sold in strip of 10 pills and the marginal cost of producing each strip is 56.00. Py = Price in USA in US dollars: Pc = Price in Canada in US dollars: Qu = Quantity sold in USA: Qc = Quantity sold in Canada. What will be the profit from the US market? O a $72.00 b.581.00 OC. $45.00 O d. $0.00 Suppose Medic Inc. has a patent for a new pill called Relieve, which alleviates Restless Leg Syndrome (RLS) and is approved to sell its products in two separate markets - USA and Canada. The inverse demand function in USA is given by Pu= 24 - Qu and the inverse demand function in Canada is given by Pe=12 - 0.5Qc. Therefore the total revenue function for USA is given by TRy = 24Qu - Qu2 and the total revenue function for Canada is given by TRC = 120c-0.5Qc Relive is sold in strip of 10 pills and the marginal cost of producing each strip is 56.00. Py = Price in USA in US dollars: Pc = Price in Canada in US dollars: Qu = Quantity sold in USA: Qc = Quantity sold in Canada. What will be the profit from the US market? O a $72.00 b.581.00 OC. $45.00 O d. $0.00
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