Suppose Company A owns the patent to "X", which is the only approved drug for the treatment of sepsis. Sepsis is a severe illness caused by a bacterial infection which possibly leads to the failure of multiple organs. Company B manufactures "Y", which is not covered by patent, and is one of several drugs that relieve the symptoms of the common cold.Points:3

a)Who has relatively more market power: Company A over treatments for sepsis or Company B over drugs for relieving the common cold? Please explain your answer.

b)How is the difference between price and marginal revenue related to the price elasticity of demand?