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The Diagram Below Shows the Demand Curve and Marginal Cost

Question 70

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The diagram below shows the demand curve and marginal cost and marginal revenue curves for a new heart medication for which the pharmaceutical firm holds a 20-year patent on its production and sales.This protection gives the firm monopoly power for the 20 years of the patent. The diagram below shows the demand curve and marginal cost and marginal revenue curves for a new heart medication for which the pharmaceutical firm holds a 20-year patent on its production and sales.This protection gives the firm monopoly power for the 20 years of the patent.   FIGURE 10-6 -Refer to Figure 10-6.Assume this pharmaceutical firm charges a single price for its drug.At its profit-maximizing level of output,consumer surplus is represented by A) areas H + I. B) areas C + D + E + F. C) areas D + E. D) There is no consumer surplus generated. E) It is not possible to determine with the information provided. FIGURE 10-6
-Refer to Figure 10-6.Assume this pharmaceutical firm charges a single price for its drug.At its profit-maximizing level of output,consumer surplus is represented by


A) areas H + I.
B) areas C + D + E + F.
C) areas D + E.
D) There is no consumer surplus generated.
E) It is not possible to determine with the information provided.

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