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 is practicing perfect price discrimination among its buyers. At its profit-maximizing level of output it will produce
A) Q0 units and charge a price of p0 on all units.
B) Q₁ units and charge a price of p1 on the last unit sold.
C) Q0 units and charge a price of p0 on the last unit sold.
D) Q₁ units and charge a price of p1 on all units.
E) - it is not possible to determine with the information provided.
Correct Answer:
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