A drug company is considering investing $100 million today to bring a weight loss pill to the market. At the end of one year, the firm will know the payoff: there is a 0.50 probability that the pill will sell at a high price and generate $30 million per year of profit forever and a 0.50 probability that the pill will sell at a low price and generate $1 million per year of profit forever. The interest rate is 10%. What is the expected net present value of this investment?

In a Cournot market with two firms, the inverse market demand curve is P = 50 – 2Q, where Q = q1 + q2 (Firm 1’s output = q1; Firm 2’s output = q2). If Firm 2 produces 15 units of output, what is Firm 1’s residual demand curve?

A market is characterized with the inverse demand curve P = 220 – 3Q, and marginal cost of production is constant at $10. If this market is served by a two-firm cartel that evenly splits the market output, how much output does each firm produce?

If a firm practices third-degree price discrimination, the price charged should be higher in the market where demand is:

All hospitals are allowed to require drug testing as a condition of employment.

Who is appointed by the court to defend a lawsuit on behalf of an incapacitated person?

Match the appropriate action for the safeguarding of medical records.

Color vision deficiency is a form of blindness.

The Karen Ann Quinlan case is the landmark case that is an example of which of the following?

Palliative care is the total care of patients whose disease is no longer responsive to curative therapy.