Managerial Economics – Assignments are safe-assign submissions. Zero 0r minimal plagiarism- APA format Question 1- 3 book references-Zero 0r minimal plagiarism- APA format Reflect on the assigned read

Managerial Economics – Assignments are safe-assign submissions. Zero 0r minimal plagiarism- APA format

Question 1- 3 book references-Zero 0r minimal plagiarism- APA format

Reflect on the assigned readings for Week 2 and then type a three page paper regarding what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.  Define and describe what you thought was worthy of your understanding in half a page, and then explain why you felt it was important, how you will use it, and/or how important it is in managerial economics.

Question 2-  4 book references-Zero 0r minimal plagiarism- APA format. 2 pages.

1. Prescott Pharmaceuticals makes a number of generic versions of drugs. When Cymbalta (Duloxetine) lost its patent, Prescott invested $500,000 to obtain FDA approval and $100,000 to certify one of its production lines for its production. Production of the drug will cost $2,000,000. Marginal costs for the tablet are $0.10 and they sell for $0.40 per tablet. But many firms have entered and now make Duloxetine causing sales to fall off. Prescott anticipates that it could use this production line for other drugs losing patent protection shortly. If forecasted sales are 5 million tablets, what is the breakeven price? Should Prescott discontinue selling this product?

2. When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $350. The economics consulting firm it hired to estimate the demand elasticity confirmed this was the optimal price. Since then, entry has occurred that make customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4. Also, it eked out cost savings and now has a unit cost of $300. What price should ShorTech charge now?