Use the Figure Below to Answer the Following Questions

question 17

Multiple Choice

Use the figure below to answer the following questions.

Figure 13.4.6
-Prime Pharmaceuticals has developed a new asthma inhaler, 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, producer surplus is

• A)$16 million.
• B)zero.
• C)$32 million.
• D)$64 million.
• E)$24 million.

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