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Drugs X and Y are close substitute prescription drugs, which treat a common disease called procrastination. Currently Drug X and Drug Y collude and act
Drugs X and Y are close substitute prescription drugs, which treat a common disease called procrastination. Currently Drug X and Drug Y collude and act like a monopolist. Patent for Drug X will expire on November 31, 2011. Patent for Drug Y will expire on May 15, 2016. Note that Drugs X and Y are the only drugs that currently treat procrastination. Using the below graph, illustrate the effect of the expiration of the patent for Drug X on price, quantity, and profit of Drug Y. Explain
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