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Consider the firm Johnson & Johnson (J&J) and the production of the drug bedaquiline to treat tuberculosis (TB), and its recent decision to cut the
Consider the firm Johnson & Johnson (J&J) and the production of the drug bedaquiline to treat tuberculosis (TB), and its recent decision to cut the price of bedaquiline from $46 to $8 per month. Illustrate and explain to a typical first-year undergrad student who has no economics background what has happened to profit (producer surplus), markup, consumer surplus and the output as a result of the price reduction.
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