Health Economics
Answer 1)
i) The maximum price which Celgene should spend is the intersection point of demand curve and marginal cost, as any consideration above this point will be above his ATC, and will bring losses for the firm.
Answer 2)
i) Annual Revenue of top four companies : 130+74+58+49= $311 Billion Total Revenue of all the companies in the industry: 130+74+58+49+34+17+14+13+10+271=$670 Billion Four-Firm Concentration Ratio: 311/670= 46.41%
ii) HHI: Note: HHI = Sum of square of market share of all the firms iii) As a basic rule, Justice Department always ...