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Find output, price, and profits if the pharmaceutical company is granted a patent that, effectively, grants it a monopoly. [15 points] 2. From the monopolist's
Find output, price, and profits if the pharmaceutical company is granted a patent that, effectively, grants it a monopoly. [15 points] 2. From the monopolist's FOC in part (1), derive the monopolist's markup. (Hint: the monopolist's markup is how much higher its price is than marginal cost, pMC p .) [5 points]
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