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Pfizer and Astellas sell the prostate cancer drug Xtandi in the United States and rest ofthe world respectively. In 2018, the price of Xtandi in
Pfizer and Astellas sell the prostate cancer drug Xtandi in the United States and rest ofthe world respectively. In 2018, the price of Xtandi in the United States was US$88,704 per treatment, as compared with US$36,288 in England. (Hint: Assume any data necessary to draw the figures below.) a) Suppose that the marginal cost of producing Xtandi is US$4,400 and Pfizer sets the price to maximize profit in the United States. Illustrate the profit maximum. b) On a similar figure as in (a), assume that Astellas sets the price to maximize profit in England. Illustrate the profit maximum. c) Compare the demand curves in the United States and England. Which is more price elastic
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