Prime Pharmaceuticals has developed a new asthma medicine, for it has a patent. An inhaler can be produced at a constant marginal cost of $2/inhaler
The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if it is a single-price monopoly, Prime Pharmaceuticals will produce ________ inhalers and set a price of ________ for each inhaler. A) 16 million; $2
B) 10 million; $5
C) 8 million; $6
D) 8 million; $2
C
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If stock prices follow a random walk,
a. speculation in the stock market destabilizes prices. b. a stock's past performance is not a good indicator of its future performance. c. rumors, news, and other "signals" have no effect on stock prices. d. the stock market does not participate in channeling resources toward firms with high stock prices.
According to the U.S. Department of Commerce, a foreign direct investment inflow to the United States occurs whenever a foreign company acquires ____ or more of a U.S. firm.
a. 10% b. 25% c. 51% d. 100%
A craft union attempts to increase wage rates by:
A. equating the MRP and the MRC curves. B. shifting the labor supply curve to the left. C. shifting the labor supply curve to the right. D. shifting the MRP curve to the right.
The Fed has recently paid interest on the required and excess reserves that banks hold.
Answer the following statement true (T) or false (F)