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Use the Figure Below to Answer the Following Questions

question 39

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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 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, deadweight loss is A) $16 million. B) zero. C) $32 million. D) $64 million. E) $24 million.
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, deadweight loss is


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Strategic Writing Pattern

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Goodwill

Represents the intangible asset that arises when one company acquires another for a price higher than the fair market value of its net assets, often attributed to the company's brand, customer relations, and reputation.

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The moral consequences or considerations relevant to decisions, actions, or policies.

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