In October of 2004, British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporation due to concerns over bacterial contamination. As a result, the remaining suppliers of the flu vaccine experienced an increase in their market power. Suppose that the market for the influenza vaccine became a monopoly as a result of the contamination at one of the initial suppliers of the vaccine. This situation is illustrated in the following graph (assume fixed costs are equal to zero):

Price ($ per dose) 55 50 45 40 35 30 25 Demand 20 15 Marginal Cost 10 5 Marginal Revenue 4 8 12 16 20 24 28 32 36 40 44 Quantity (millions of doses)