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English2Computer Science2Accounting1Biology2Statistics2Physics2Economics1
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...

The Case of J&J and Changes to Drug Pricing of Treatment for TB
The world's largest pharmaceutical market is the US. But there is social contention about the monopoly pricing strategies of big drug firms, e.g. see

Consider the firm Johnson & Johnson (J&J) and the production of the drug bedaquiline to treat tuberculosis (TB), and its recent decision to cut the price of bedaquiline from $46 to $8 per month, as discussed in the following freely available articles:
For this task, you will be required to illustrate and explain to a typical first-year undergrad student who has no economics background what has happened to profit (producer surplus), markup, consumer surplus and the output as a result of the price reduction.

â–Ş You will hand draw one (1) diagram with an isoprofit curve, which is an adaptation of Figure 7.9d from the CORE ESPP text. An adaptation means that you modify the main diagram from the text to suit the case study at hand, for the drug to fight TB. Assume unit costs of production of this drug are a constant $5 per month.

â–Ş Youareonlyrequiredtodrawoneisoprofitcurvewiththeprofit-maximisingpriceof$46.Beaccuratewhen you draw your isoprofit curve, but there is no need to calculate with precision all the points on the isoprofit curve. Calculate and show workings of what the iso-profit would be for any price greater than $10 but less
than $40 (pick any one price but stick to an integer).

â–Ş Fortheincrementalquantitiesofdrugproductiononthex-axis,usehypotheticalvalues(roughguessesfrom
your imagination). Also use your intuition for making up other prices/costs of the drug on the y-axis and
make up a demand (straight-line) 'curve'.

â–ŞCalculateandshowworkingsforthechangeinproducersurplusandmarkup,butyouonlyneedtoshadein
the change in consumer surplus.

The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...
The sun's golden rays gently kissed the tranquil ocean, casting a mesmerizing ...

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