23andMe Slashes Workforce

February 3, 2020dna

23andMe slashes 14% of workforce.

Questions
  1. According to 23andMe CEO Anne Wojcicki, why is the demand for genetic tests decreasing?

Suppose that the market for genetic testing is perfectly competitive.

  1. What is the effect on the marginal revenue of each firm in the market when the demand for genetic testing decreases?
  2. Why is 23andMe making the decision to decrease its workforce but not making the decision to shut down?
  3. Is it possible that 23andMe is incurring an economic loss given that it is remaining in the market?
  4. Draw a graph to illustrate your answers to #3 and #4.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.