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Question 2 (a) Healthy Lid., a pharmaceutical company, produces a unique anti-cancer drug in Country A. This anti-cancer drug was launched last year after 10 years of research and development. Its demand and production cost information is listed in Table 3. The total cost includes the rent of its production plant, which is $10,000 per month. Demand Schedule Production Cost Quantity Demanded Price Total Cost (Number of bottles per ($ per bottle) (5) month 100 650 110,000 200 600 130,000 300 550 145,000 400 500 180,000 500 450 220,000 Table 3 - Demand schedule and production cost of Healthy Ltd. (i) Analyze the conditions that give rise to a monopoly status that Healthy Ltd. owns in producing the anti-cancer drug in Country A. (3 marks) (ii) Based on the information given, construct ONE new table to calculate the marginal cost and marginal revenue of each production level of the anti-cancer drug. Round all figures to integer, if applicable. Quantity Marginal Cost Marginal Revenue (Number of bottles ($) ($) per month) (Remarks: Significant mark deduction applies if the table is broken into 2 parts or 2 tables) (4 marks) (ii) What quantity should Healthy Ltd. produce and what price should it charge to maximize its profit? Is it making a profit or loss? Illustrate this short-run equilibrium in a well labelled diagram with all critical values. No explanation is needed. (5 marks) (b) Ashley is a fresh graduate and is now planning to start a new business. She would run an online shop to sell snacks imported from Japan. She expects the annual purchase cost would be $380,000 and the annual sales would be $790,000. Four sets of computers are needed, which cost $7,000 each and could be sold at half price in the second-hand market after one year. She has to rent a small office, which costs her $19,000 per month. () Calculate the annual accounting profit of Ashely's snack business. (4 marks] (il) Ashley will be involved in the daily operations of this snack business and has to give up the opportunity to get a full-time job. In consideration of annual economic profit, in what condition should Ashley start this business? Explain with relevant figures. (4 marks)