Currently, it is illegal to import prescription drugs into the United States despite the fact that U.S. consumers could buy drugs from Canada at lower prices than those available in the United States. What set of cost curves is most consistent with the price difference between the United States and Canada?
A. Producing a drug has a low fixed cost with a relatively high marginal cost.
B. Producing a drug has a high fixed cost with a relatively low marginal cost.
C. Producing a drug has a high and constant marginal cost.
D. Producing a drug has a low fixed cost and a rising marginal cost.
Answer: B
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