Problem 2. Your pharmaceutical company holds the patent and license to sell a prescription drug in two countries, A and B. Cross-border sales are prohibited by law, so the possibility of inter-country resale can be ignored. (2.1) The price elasticity of demand for the drug is estimated to be 3 in country A and 2 in country B. What can you say about how profit-maximizing prices will differ across countries? (2.2) Suppose you have priced the good at $30 per unit in country A, and that you have been asked by the World Health Organization to provide the drug to developing nation C for $15 per unit. The World Health Organization claims this is possible without incurring a loss. Are they correct?