(15%) Medicine affordability is a large and growing global problem. In the US, both President Donald Trump and many of his prospective Democratic opponents are looking for ways to bring prices down. In the UK, the opposition Labour party has endorsed two potentially far-reaching ideas: override patent protection on excessively priced medicines and change the way pharmaceutical research and development is funded. (a) Suppose the patent protection creates a monopoly for each patented drug in the pharmaceutical industry. Use a diagram to explain how a monopoly maximizes its profit. Shows clearly the price, quantity, and profit of the monopoly. (10%) (b) Suppose the patent protection is overridden for some drugs. Free entry of non-branded bioequi valent (or generic) drugs results in a perfectly competitive market for these drugs. Use the same diagram to explain how the market equilibrium will change. (5%)