Suppose Perck pharmaceuticals has developed a new osteoporosis drug called NoBreak that is believed to be the best available treatment for osteoporosis. They are the only producer of this product and hold an exclusive patent for the drug. The market demand for NoBreak is P = 84 - 6Q where quantity is measured in millions of courses of treatment and P is the price per course of treatment.

After their heavy R&D expenditures to develop NoBreak, Perck's marginal costs of producing are quite modest at $1.20 per course of treatment. (And you can assume that this marginal cost does not change no matter how much they produce.) In each blank below, enter a number and only a number. No words or dollar signs.

not round at any step of any calculation. not round your answers.

(a) What price and quantity would Perck choose to maximize their profits from selling NoBreak?

Price = $ per course of treatment

Quantity = million courses of treatment

(b) What is the the socially optimal (surplus maximizing) price and quantity?

Price = $ per course

Quantity = million courses

(c) What is the deadweight loss from monopoly power in this market? Deadweight loss = $ million

(Note for those of you worried about units: Q is measured in millions of courses. P is measured in $/course. Therefore any areas you calculate on the standard picture will be (millions of courses)x($/course) = $ millions. In other words, you don't have to do any conversion. Everything works out in the right way.)