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 charges a single price for its drug.At its profit- maximizing level of output,it will generate a total profit represented by
A) areas A+B+C+F+G.
B) the sum of areas A through K.
C) areas D+E.
D) areas B+C+F+G+H+I.
E) It is not possible to determine with the information provided.
Correct Answer:
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