The Diagram Below Shows the Demand Curve and Marginal Cost

question 82

Multiple Choice

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.