Question 2

(a) Healthy Ltd., 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) ($) month) 100 650 110,000 200 600 130,000 300 550 145,000 400 500 180,000 500 450 220,000 Table 3 - Demand schedule and production cost of Healthy Ltd.Quantity Marginal Cost Marginal Revenue (Number of bottles ($) ($) per month) (Remarks: Significant mark deduction applies if the table is broken into 2 parts or 2 tables)