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.
Correct Answer:

Verified
Correct Answer:
Verified
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