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The Diagram Below Shows a Pharmaceutical Firm's Demand Curve and Marginal

Question 2

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The diagram below shows a pharmaceutical firm's demand curve and marginal cost and marginal revenue curves for a new heart medication for which the firm holds a 20- year patent on its production.
The diagram below shows a pharmaceutical firm's demand curve and marginal cost and marginal revenue curves for a new heart medication for which the firm holds a 20- year patent on its production.    FIGURE 10- 5 -Refer to Figure 10- 5.Assume this pharmaceutical firm is practicing perfect price discrimination among its buyers.At its profit- maximizing level of output it will produce A) Q1 units and charge a price of p1 on the last unit sold. B) Q0 units and charge a price of p0 on the last unit sold. C) Q1 units and charge a price of p1 on all units. D) Q0 units and charge a price of p0 on all units. E) It is not possible to determine with the information provided. FIGURE 10- 5
-Refer to Figure 10- 5.Assume this pharmaceutical firm is practicing perfect price discrimination among its buyers.At its profit- maximizing level of output it will produce


A) Q1 units and charge a price of p1 on the last unit sold.
B) Q0 units and charge a price of p0 on the last unit sold.
C) Q1 units and charge a price of p1 on all units.
D) Q0 units and charge a price of p0 on all units.
E) It is not possible to determine with the information provided.

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