Question

what was the expected profit of the company if 100 surgical mask and 50 N95 mask are sold on a day before capping the prices ​

Answer 1

N95 masks, bought by government agencies at Rs 12.25 including taxes in September 2019, cost them Rs 17.33 in January 2020, Rs 42 by March-end and up to Rs 63 by the middle of May, an increase of over 250% since the beginning of the year. Yet, the price regulator NPPA has decided not to cap the price of N95 masks as it “may disincentivise domestic manufacturing”.

Instead, on June 3, it put out alist of maximum retail prices (MRP) of N95 masks manufactured by domestic companies ranging from Rs 95 to Rs 165 as reduced prices. The ‘reduced’ MRPs are 450%-850% higher than the January price paid by agovernment institution.

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