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Pharmaceutical companies develop medications that address important conditions like cancer and Ebola. They also develop medications for conditions that are less dire but more prevalent. You will use linear and quadratic functions to explore how much pharmaceutical companies expect to make from different drugs, and discuss ways to incentivize companies to develop medications that are more valuable to society. How should pharmaceutical companies decide what to develop?

Students will use the varied relationships of linear equations to describe a business model for a product they designed. Students will graph the income and expense and determine the profit by month. They will discover the relationship the slope has to income, expense, and profit. They will also use their model to predict future revenue, expense and profit as well as determine if thy have a sustainable business. This project focuses on one product but can easily be extended to multiple products and multi-variable equations.

PBL on forecasting a maximized profit for a local business using quadratic functions