Consider a pharmaceutical company who can develop a cure for a disease, but they need to invest in research to be able to find the right compound to synthesize. They expect that the cost of research would be around $1 million, but then the cost of producing each unit of the drug would cost $500. Suppose that the demand for this drug is given by P(Q) = 10,000 - 10Q. The graph for the pharmaceutical firm is shown below.

Pharmeceuticalcompany 10000 9000 8000 7000 6000 Price 5000 4000 3000 2000 1000 100 200 3:00 400 500 1600 700 900 1000 Quantity