-Prime Pharmaceuticals has developed a new asthma medicine, for which it has a patent. An inhaler can be produced at a constant marginal cost of $2/inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if Prime Pharmaceuticals could perfectly price discriminate, then consumer surplus would equal

Question

Quizplus · Accepted Answer

If Prime Pharmaceuticals could perfectly price discriminate, it would capture all consumer surplus as profit, leaving consumer surplus equal to zero.

-Prime Pharmaceuticals Has Developed a New Asthma Medicine, for Which