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2. Monopoly A drug company takes out a patent on a vaccine fora deadly virus. The rm can produce the vaccine for a constant marginal
2. Monopoly A drug company takes out a patent on a vaccine fora deadly virus. The rm can produce the vaccine for a constant marginal cost of $0.20. a) How does the rm determine what quantity to produce? (2 Marks) b) Assumethe prot maximising level of production is 4,000 units per hour. At this level of production average total cost is S) .20 per unit, average xed cost is $1 per unit and it is charging $4.20 per unit. What is the level of prot per hour
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