Prime Pharmaceuticals has developed a new asthma medicine, for it has a patent. An inhaler can be produced at a constant marginal cost of $2/inhaler
The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if it is a single-price monopoly, Prime Pharmaceuticals will produce ________ inhalers and set a price of ________ for each inhaler. A) 16 million; $2
B) 10 million; $5
C) 8 million; $6
D) 8 million; $2
C
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The U.S. inflation rate ________ in the 1960s and 1970s, ________ in the 1980s, and ________ in the 1990s and 2000s
A) was steady; rose sharply; fell B) was steady; rose sharply; remained high C) rose; fell sharply; remained low D) rose; fell sharply; rose again
Suppose a cost function is TC = Aq3 + bq2 + cq + d. Then the total fixed cost is
a. Aq2 + bq + cq +d/q b. Aq2 + bq + c c. Aq3 + bq2 + cq d. d