Recently, pfizer and allergan – the makers of viagra and botox, respectively – initiated a $160 billion merger. pharmaceutical companies tend to spend a greater percentage of sales on r& d activities than other industries. the government encourages these r& d activities by granting companies patents for drugs approved by the food and drug administration. for instance, allergan spent large sums of money developing its popular wrinkle-removing neurotoxin, botox, which is currently protected under a patent. botox sells for about $15 per vial. calculate the lerner index if the marginal cost of producing botox is $1.50 per vial. does the lerner index make sense in this situation? no, it is not possible to have a lerner index this high. yes, allergan has a patent-protected monopoly. no, a lerner index this high is not consistent with profit maximization

U. s. internet advertising revenue grew at the rate of r(t) = 0.82t + 1.14 (0 ≤ t ≤ 4) billion dollars/year between 2002 (t = 0) and 2006 (t = 4). the advertising revenue in 2002 was $5.9 billion.† (a) find an expression f(t) giving the advertising revenue in year t.

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i. e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i. e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.