A product you produce has the following annual demand function:
P=90-0.003Q
The marginal cost of producing the product is $30. If the firm pays a fee of $50000 to the General Drug Research Council, it can have its product's effectiveness certified. The demand function for a certified product is expected to be P=100-0.003Q
A.) calculate the price, output, and profit contribution if the product is certified
B.) should the firm undergo the certification process?