Your pharmacy provides services to medicare and ppo


Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. What is the profit-maximizing dispensing fee for Medicare and PPO patients? Why might the price elasticities of demand differ?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Your pharmacy provides services to medicare and ppo
Reference No:- TGS01117408

Expected delivery within 24 Hours