Problem 2. Pharmaceutical Segmentation A pharmaceutical company faces the following demand function for one of its products in the American market: QA = 2,000,000 - 20,000P where QA is the number of prescriptions sold in the American market annually and PA is the price per prescription. The firm's annual total cost function is: TC = $40,000,000 + $5QA The company is considering also entering the Brazilian market where the demand for the pharmaceutical is: Q: = 200,000 - 3,000P The cost function for the Brazilian market is: TC = $1,000,000 + $5Q A. Calculate the firm's optimal price in the US. Show your work. B. What is the optimal price to charge in the Brazilian market? Show your work. C. Explain why the problem of parallel imports, a form of arbitrage, may result from the pricing structure you have calculated in the previous questions