Company X is the sole domestic producer of the generic antidepressant Sensitrum with a marginal cost is $2 per dose. Demand is given by Q=400-50P (Q in millions of doses and P in US dollars). There is a second producer in India whose marginal cost is $2.7 (including transportation cost to the US). Firms set prices simultaneously.

(i) What will be the US market price (P_US) for Sensitrum? Why? (Hint: You can provide a range such that P_US is less than and/or greater than some amount).

(ii) At that price range what is Company X's share in the domestic market?

(iii) Now, assume P_US =2.5. Calculate Company X's equilibrium profits?