Botox quiz (low difficulty): To stimulate the sagging demand for cosmetic procedures during the economic downturn, Allergan is offering US physicians a coupon good for $50 off a vial of Botox ordered during February. The US list price of a Botox vial is about $250, so the cost to a physician is about $200 with the coupon.
Q: Why does Allergan expect its average US selling price of Botox during February to be substantially higher than $200?
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”