Use the figure below to answer the following questions. Figure 12.4.6
-Prime Pharmaceuticals has developed a new asthma inhaler,for which it has a patent.An inhaler can be produced at a constant marginal cost of $2 per inhaler.The demand curve,marginal revenue curve,and marginal cost curve for this new asthma inhaler are shown in Figure 12.4.6.The patent gives Prime Pharmaceuticals a monopoly for its new inhaler.If Prime Pharmaceuticals can perfectly price discriminate,deadweight loss is
A)$16 million.
B)zero.
C)$32 million.
D)$64 million.
E)$24 million.

Question

Use the figure below to answer the following questions.  Figure 12.4.6
-Prime Pharmaceuticals has developed a new asthma inhaler,for which it has a patent.An inhaler can be produced at a constant marginal cost of $2 per inhaler.The demand curve,marginal revenue curve,and marginal cost curve for this new asthma inhaler are shown in Figure 12.4.6.The patent gives Prime Pharmaceuticals a monopoly for its new inhaler.If Prime Pharmaceuticals can perfectly price discriminate,deadweight loss is
A)$16 million. 
B)zero. 
C)$32 million. 
D)$64 million. 
E)$24 million.

Quizplus · Accepted Answer

If Prime Pharmaceuticals can perfectly price discriminate, it can charge each consumer their maximum willingness to pay for the inhaler, resulting in no deadweight loss. Therefore, the answer is zero.

Use the Figure Below to Answer the Following Questions