The diagram below shows the demand curve and marginal cost and marginal revenue curves for a new heart medication for which the pharmaceutical firm holds a 20-year patent on its production and sales.This protection gives the firm monopoly power for the 20 years of the patent.
FIGURE 10-6
-Refer to Figure 10-6.Assume this pharmaceutical firm is practicing perfect price discrimination among its buyers.At its profit-maximizing level of output,consumer surplus is represented by
A) areas C + D + E + F + H.
B) areas D + E.
C) areas C + F + H.
D) There is no consumer surplus.
E) It is not possible to determine with the information provided.
Correct Answer:
Verified
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