Please draw the isoprofit curves for the scenario below!!!!!!!!!

To illustrate the profit of the firm and the effects of a price change from $38 to $10 per month for the Ozempic drug, we'll use a basic diagram with an isoprofit curve.

Let's start by drawing the diagram:

1. **Horizontal Axis (X-axis)**: Quantity of Ozempic drug produced per month (Q). 2. **Vertical Axis (Y-axis)**: Price of the Ozempic drug (P) and costs ($).

Now, let's add the elements to the diagram:

- **Demand Curve**: Draw a downward-sloping straight line representing the demand for the Ozempic drug. It should intersect the Y-axis at $38 (assumed profit-maximizing price for Bangladesh) and the X-axis at some quantity. - **Marginal Cost Curve**: Draw a horizontal line at $5 (cost of production). - **Isoprofit Curve**: Plot one isoprofit curve passing through the point where marginal cost equals $5 (the cost of production). To illustrate, calculate and plot hypothetical isoprofit curves for $50 and $20 to demonstrate that the firm earns the same profit at those prices.

Next, let's analyze the effects of reducing the price from $38 to $10:

- **Change in Producer Surplus**: Calculate the area between the marginal cost curve and the new price ($10). This represents the change in producer surplus. - **Markup**: Calculate the difference between the price ($10) and the marginal cost ($5). This represents the markup. - **Change in Consumer Surplus**: If the price decreases to $10, shade in the area between the demand curve and the new price ($10) up to the quantity demanded. This represents the change in consumer surplus.

By visually representing these changes on the diagram, it becomes easier to understand the impact of price changes on producer surplus, markup, consumer surplus, and overall profit for the firm.