Scenario: A large pharmaceutical company is developing a new drug with the potential to treat a widespread condition. The company has already invested heavily in R&D. As the drug moves closer to market release, they must: Set a production quantity Determine a pricing strategy The company faces significant fixed costs but relatively low variable costs per unit. Demand for the drug is expected to be highly price-elastic in the early stages of release. With the given scenario, provide a comprehensive response on the following tasks: a) Using marginal analysis, explain the company's optimal production decision. b) Discuss the factors to consider when setting a price for this drug. Consider short and long-term strategies, the impact of price elasticity, and non-economic goals the company might wish to pursue (e.g. wider access to the treatment)