The Diagram Below Shows the Demand Curve and Marginal Cost

Multiple Choice

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 is practicing perfect price discrimination among its buyers.At its profit-maximizing level of output it will produce

A) Q₁ units and charge a price of p₁ on the last unit sold.
B) Q₁ units and charge a price of p₁ on all units.
C) Q₀ units and charge a price of p₀ on the last unit sold.
D) Q₀ units and charge a price of p₀ on all units.
E) It is not possible to determine with the information provided.