The Diagram Below Shows the Demand Curve and Marginal Cost

question 58

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.Suppose this pharmaceutical firm is charging a single price for its drug and is maximizing its profits.If it then begins to perfectly price discriminate among its buyers it will

• A)cause a loss of economic surplus to society as a whole.
• B)capture consumer surplus equal to areas D + E + C + F + H.
• C)no longer be equating MR and MC.
• D)reduce its producer surplus by areas C + F + H.
• E)decrease its total output.

---

Definitions:

Common Factors Research

Investigates the core elements that different psychological therapies share, which contribute to their effectiveness regardless of specific techniques.

Competencies

The skills, knowledge, and abilities that enable a person to perform tasks effectively.

Necessary Skills

Essential abilities required to effectively perform a task or job, often within a specific context like therapeutic practice.

Client Factors

Characteristics of a client that may influence the counseling process, including history, personality, and current circumstances.