Use the Table Below to Answer the Following Question(s) -Calculate the Market Size for the Second Year

question 25

Multiple Choice

Use the table below to answer the following question(s) .
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential new drug. The total R&D costs are estimated to reach around $875,000,000 with clinical trials mounting to
$145,000,000. The current market size is estimated to be around 3,000,000 and is expected to grow at 4 percent every year. The market share Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25 percent each year for the next 4 years. A monthly prescription is anticipated to generate revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is assumed. $$\begin{array} { | l | l | } \hline \text { Dresden Pharmaceuticals } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Market Size } & 3,000,000 \\\hline \text { Unit (monthly Rx) revenue (\$) } & 420 \\\hline \text { Unit (monthly Rx) cost (\$) } & 150 \\\hline \text { Discount Rate (per cent) } & 8 \\\hline & \\\hline \text { Project Costs } & \\\hline \text { R\&D (\$) } & 875,000,000 \\\hline \text { Clinical Trials (\$) } & 145,000,000 \\\hline & \\\hline\end{array}$$
-Calculate the market size for the second year.

• A) 3,000,000
• B) 273,000
• C) 3,244,800
• D) 3,120,000

Calculate the difference in quantity between types of components in a production process.

Understand the historical context and emergence of cognitive psychology and its differentiation from other psychological schools of thought.

Identify and differentiate between the main psychological perspectives and their approaches to understanding human behavior.

Understand the concept of stress and its effects from a psychological perspective, including the evolution of stress responses.

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Definitions:

Player Substitutions

The act of replacing one player with another during a game, common in team sports, to adjust strategies or enhance performance.

Specialization

A process in which individuals, organizations, or countries focus on producing a limited range of goods or services, aiming to increase efficiency and expertise.

Production

The method of merging different materials and non-material elements (such as designs and expertise) to create products for use.

The Wealth of Nations

"The Wealth of Nations" is a seminal book by Adam Smith, where he examines the nature and causes of the wealth of nations, laying the foundations of classical economics.