Hi, I got a question in microeconomics. I was supposed to read a text. I screenshot the text below and I with that text I had some more context on my second question where I was suppose to do the graph and answer the question if it was positive or negative. I said it was negative and the second question was if it was true or false. and I said it true. could you please help me with the graph how to do it. And also I got 2 other questions where I need to choose more than 1 choice. But all these questions are related to the first 3 pictures. I have inserted 5 pictures. please see them all. because some data might be missing if you dont look at all the 5 pictures. Please see my 5 screenshots. there is 5 pictures.
and the question to be answered that are not on the pictures are this one
3. Mylan Pharmaceutical and price rebates
Imagine that the company Mylan Pharmaceutical has a monopoly in the EpiPen market, but the government forces the company to offer rebates to low-income customers.That is, customers have to prove that they have a low-income in order to get the rebates. Which of the following is true given these rebates?Check all that apply!
-Mylan's profits would increase
-This is called implicit price discrimination
-This is called explicit price discrimination
-P
-Mylan's profits would not change
-The market demand curve would become perfectly elastic
-Mylan's profits would decrease
-This is called perfect price discrimination
-P > MC
4. Competition in the EpiPen market
If more and more pharmaceutical firms enter the EpiPen market because there is profit to be made and there are no barriers to entry, which of the following is true?Check all that apply!
-Deadweight loss would decrease
-In the long run, P
-Consumer surplus would increase
-There would be no change to P in the market
-In the long run, P > ATC
-Consumer surplus would decrease
-Deadweight loss would increase
-In the long run, P = ATC
O G ng.cengage.com C Course Hero Get Homework Help With Chegg Stud... Loto Quebec. Discuss Why It Is Consi... > Ang.cengage.com . G NelsonBrain -... NelsonBrain - My Home Mind Tap - Cengage Learning CENGAGE |MINDTAP Q Search this course K Rabeesha v Article Analysis 2: Market Power and the Epipen X automatically extend to both axes. (? 1000 900 800 QD at $150 A-Z PRICE (Dollars per Epipen) 700 600 Profit Max 500 400 ATC at Profit Max 300 200 ATC Profit 100 MC- MR D 2 3 4 5 6 7 8 9 10 QUANTITY (Thousands of EpiPens) O If Mylan continues to charge $150 per Epipen, Mylan will earn negative _ economic profit. True or False: Given the demand curve for EpiPens, you should tell Mylan's CEO that total revenue will increase if she raises the price of EpiPens because the demand curve in this region is relatively elastic. True False O G ng.cengage.com C Course Hero Get Homework Help With Chegg Stud... Loto Quebec. Discuss Why It Is Consi... > Ang.cengage.com . G NelsonBrain -... NelsonBrain - My Home Mind Tap - Cengage Learning CENGAGE |MINDTAP Q Search this course K Rabeesha v Article Analysis 2: Market Power and the Epipen X Q Q QUANTITY (EpiPens) In 2016, without major competition to keep prices in check, Mylan took advantage of its virtual monopoly on this life-saving allergy treatment by A-Z increasing its price to more than $600 compared to $100 in 2009. According to Wieczner's follow-up article in Fortune: "Public and Congressional outrage not only forced Mylan to pay a $465 million settlement and launch a cheaper, generic version of the injection device, but it also spurred rivals and regulators to speed competing epinephrine injectors to market to lower costs" (Jen Wieczner, "Mylan's Epipen Recall Couldn't Come at a Worse Time," Fortune, April 3, 2017). How did Mylan achieve this kind of market power in the first place? There are many sources of monopoly power, but in this case, the lack of close substitutes, significant barriers to entry, and legal barriers such as patents are the most likely contributors. While today the cost of EpiPens seems to be back under control, what if this situation applied to other necessary goods, such as insulin? O In what year did Mylan acquire the Epipen? 2005 2007 2015 2016 O G ng.cengage.com C Course Hero Get Homework Help With Chegg Stud... Loto Quebec. Discuss Why It Is Consi... > Ang.cengage.com . G NelsonBrain -... NelsonBrain - My Home Mind Tap - Cengage Learning CENGAGE | MINDTAP Q Search this course K Rabeesha v Article Analysis 2: Market Power and the Epipen X In 2007, as part of a $6.7 billion deal with Merck & Co., Inc., one of the largest pharmaceutical companies in the world, Mylan N.V., an American generic and specialty pharmaceuticals company, acquired the Epipen, an epinephrine injection device used to treat the potentially fatal allergic reaction known as anaphylaxis. At the time, Epipen was not a household brand that everyone knew, but efforts by Mylan's CEO Heather Bresch changed the landscape for this device. According to Jen Wieczner, in an article in Fortune: 'She poured marketing resources into the product, and embarked on an awareness and political campaign to get more EpiPens into schools and other public institutions. Today, 47 states have laws about making epinephrine auto-injectors available at school in case of A-Z an anaphylaxis incident, largely as a result of Bresch's efforts" (Jen Wieczner, "Mylan CEO Blamed Obama Care for Epipen Sticker Shock," Fortune, August 24, 2016). The market for such devices was relatively competitive until Epipen's biggest competitor, Sanofi's Auvi-Q, went off the market in 2015 due to recalls. Because of the severity of allergic reactions treated by the Epipen, this kind of injection device is hardly optional for those patients who need it. This means that demand for this type of good is likely relatively inelastic; in other words, an increase in price of EpiPens would not have a large affect on the quantity demanded: (?) O Demand lars per Epipen) O G ng.cengage.com C Course Hero Get Homework Help With Chegg Stud... Loto Quebec. Discuss Why It Is Consi... > Ang.cengage.com . G NelsonBrain -... NelsonBrain - My Home Mind Tap - Cengage Learning CENGAGE | MINDTAP Q Search this course K Rabeesha v Article Analysis 2: Market Power and the Epipen X The market for such devices was relatively competitive until Epipen's biggest competitor, Sanofi's Auvi-Q, went off the market in 2015 due to recalls. Because of the severity of allergic reactions treated by the Epipen, this kind of injection device is hardly optional for those patients who need it. This means that demand for this type of good is likely relatively inelastic; in other words, an increase in price of EpiPens would not have a large affect on the quantity demanded: (?) A-Z Demand PRICE (Dollars per Epipen) P O Q Q QUANTITY (EpiPens) In 2016, without major competition to keep prices in check, Mylan took advantage of its virtual monopoly on this life-saving allergy treatment by O G ng.cengage.com C Course Hero Get Homework Help With Chegg Stud... Loto Quebec. Discuss Why It Is Consi... > Ang.cengage.com . G NelsonBrain -... NelsonBrain - My Home MindTap - Cengage Learning CENGAGE |MINDTAP Q Search this course K Rabeesha v Article Analysis 2: Market Power and the Epipen X Back to Assignment Attempts: Score: / 2 2. The market for EpiPens Consider the pharmaceutical company Mylan that produces epinephrine injection devices called EpiPens. In the presence of other firms producing substitutes for this good, the price of EpiPens is $150 A-Z Now suppose that competitors to Mylan no longer produce epinephrine injection devices, so Mylan now has pricing power in this market. As the economist on staff at Mylan, you are charged with the task of figuring out what your company's new pricing strategy should be. The following graph shows the marginal cost (MC), which is assumed to be constant, and the average total cost (ATC) of Mylan. The graph also shows the demand curve (D) for EpiPens and the marginal revenue curve (MR) once the firm has market power. On the graph, use the grey point (star symbol) to indicate the quantity of EpiPens demanded if Mylan continues to charge $150. Dashed drop lines will automatically extend to both axes. (?) 1000 O 900 800 QD at $150 RICE (Dollars per Epipen) 700 600 Profit Max 500 400 ATC at Profit Max 300
