5. (50 points) There are onl)r two countries in the world in this question US. and Canada. Pzer is a monopoly drug rm who recently
5. (50 points) There are onl)r two countries in the world in this question US. and Canada. Pzer is a monopoly drug rm who recently developed a new COVID- 19 vaccine to he uid in thcec two markets. The demand for this vaccine in the U.S. and Canada is QUE QCAN mo 4P\" (1) = 240 new\" (2) Pzer has only one plant in the US. with the following Cobb-Douglas production function 1\" = fun L) = 4KL (3) (a) (15 points) Use the cost minimization method, nd the minimal total cost that Pzer can produce Q of this new vaccine. Remember, your answers should be a function of wage to, cost of capital 1' and output level Q. (1)) (5 points) Use the answer in part. (a) to nd the marginal cost [as a function of w. and r) to the monopolist. What is the marginal cost if to = 16 and r = 32? (c) (10 points} Now, let's say that there is no measure to prevent reselling of this vaccine between the two countries. Use the demand functions in both the U.S. and Canada, nd the total demand for this new vaccine. [Hint Do the total supplyr curve summation horizontally {i.e. xing the price and
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