Multiple Choice
-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 which of the following is TRUE?
A) It would produce and sell 16 million inhalers.
B) Inhalers would sell for $5 each.
C) Inhalers would sell for $2 each.
D) None of the above answers is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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