Maximizing Profit under Monopoly
AIDS has killed more than 36 million people worldwide. There are drugs available to treat AIDS, but the price of one pill is incredibly high in the U.S. — coming in
AIDS has killed more than 36 million people worldwide. There are drugs available to treat AIDS, but the price of one pill is incredibly high in the U.S. — coming in at 25 times higher than its cost. Why is that? In this video, we show how patent rights have created a monopoly in the U.S. market for AIDS medication, causing pills to be very expensive. In other countries, however, such as India, which does not recognize patents on AIDS medication, prices remain low. Using this example, we go over how monopolies use market power to increase prices.
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I don't know from where we got that MR shall be twice the slope of demand curve, is there any prove for that? or am I missing something?
The minimal cost of manufacture is the variation in the whole cost around modification in the measure manufactured. If the overall cost function is specified, the marginal cost is intended by pleasing the first derivative, with deference to the quantity. It is very useful information here on Maximizing Profit under Monopoly for those student who are searching for Economics professional dissertation help service at Dissertation Help UK. So I would pass this information with my student and hope it become useful for them. Thanks!