Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
Q37: Social interest theory states that<br>A)public officials favour
Q43: Use the figure below to answer the
Q45: Which of the following quotes by a
Q46: When perfect price discrimination occurs, which one
Q47: Use the figure below to answer the
Q50: Canada Post has a monopoly on residential
Q51: Use the figure below to answer the
Q59: The more perfectly a monopoly can price
Q83: Which one of the following is most
Q92: A single-price monopolist's demand curve<br>A)is its marginal