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Use the Figure Below to Answer the Following Questions

question 48

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Use the figure below to answer the following questions.
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.
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

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Definitions:

Contaminated Water

Water that has been polluted by chemical substances, bacteria, or other pathogens, making it unsafe for human consumption and use.

Percolates

The movement of water or other liquids through a porous medium, often referring to the process of water filtering through soil layers.

Primary Recycling

The process of recycling a material into a new product of the same type, like using recycled aluminum cans to make new aluminum cans.

Secondary Recycling

The process of reusing materials in a way different from their initial purpose, often involving breaking down and re-manufacturing.

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