The diagram below shows a pharmaceutical firm's demand curve and marginal cost curve 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 produce
A) Q0 units and charge a price of p0.
B) Q₁ units and charge a price of p1.
C) Q0 units and charge a price of p2.
D) Q₁ units and charge a price greater than its average total variable cost.
E) Q0 units and charge the perfectly competitive price.
Correct Answer:
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