Use the Figure Below to Answer the Following Questions

question 48

Multiple Choice

Use the figure below to answer the following questions.

Figure 13.4.6
-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 per inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are shown in Figure 13.4.6. The patent gives Prime Pharmaceuticals a monopoly for its new inhaler. If Prime Pharmaceuticals can perfectly price discriminate, then it

• A)sells 16 million inhalers.
• B)charges a price of $2 for each inhaler it sells.
• C)sells inhalers for $6 each.
• D)makes zero economic profit.
• E)Both A and B are correct.

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