A pharmaceutical company Eureka Bio has discovered a corona vaccine that can be produced at constant marginal cost of R10. The company has entered into offtake dosage agreements with country A and B....


A pharmaceutical company Eureka Bio has discovered a corona vaccine that can be produced at constant marginal cost of R10. The company has entered into offtake dosage agreements with country A and B. Country A has dosage demand of QA=200-PA, and country B has dosage demand QB=160-PB


a. If Eureka Bio is the only pharmaceutical company that was successful in developing vaccines, determine the dosage that will be sold to both countries. What will be eureka's profit



Jun 07, 2022
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