You are the owner of Economic Agriculture, which has marketed a new hybrid seed variety that was patented 3 years ago. Despite $150 million in sales for the seed technology

You are the owner of Economic Agriculture, which has marketed a new hybrid seed variety that was patented 3 years ago. Despite $150 million in sales for the seed technology last fiscal year and a low marginal cost of production ($1.25per bushel), the company has yet to show a profit from selling the hybrid seed. This is in part due to the $500 million in research & development costs. Your economist estimates that at the current price of $5per bushel the elasticity of demand for the hybrid seed technology is -1.24. Based on this information, what can you do to boost profits? Explain.

Do you need us to help you on this or any other assignment?


Make an Order Now
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.