3. In the medicines company case, do the following baseline analysis of the pricing decision. (a) (b) (d) What is the value created by Angiomax (relative to heparin) for hospitals? Calculate this value added on per patient basis, that is dollars per patient treated, for i. \"VeryHigh Risk\" Patients (Table C); ii. L\"High Risk\" Patients (Table B); and iii. \"Low Risk\" Patients (footnote 7) Note that the value added by Angiomax is the expected value (or average) of the savings for hospitals in the procedures to treat side effects of an gioplasty (page 10 gives a rough estimate of the cost per side eect). The case gives an estimate of the size of the market, so you can calculate the total savings as well. Note that the case also tells you how many patients were in the trial, but that is much smaller than the total annual market. On average how many doses of Angiomax are required per angioplasty patient? What is the value added of Angiomax per dose for each patient group? What is the marginal cost per patient (see page 9)? Assuming that every hospital use Angiomax for every patient for which the value created (or cost savings) exceeds the price, what price (per dose) maximizes the prots from sales of Angiomax? Hint: TMC could set the price of Angiomax at the average savings per patient across all three groups, or at 11] times its production cost, but in either case, you would then need to ask what is the demand for the product, or more accurately how many patients hospitals choose to treat with Angiomax and how many with Heparin. Rather than use a price rule, you should instead assume that TMC sets its price either to attract only the veryhigh risk patients, to attract the veryhigh risk and the highrisk patients, or low enough to attract all three patient groups. Finally, you do not have a smooth linear demand, so you canlt just set M R = M0. Instead you need to compare prots at the three different candidate prices