Your company holds the patent for a unique drug which has enjoyed worldwide success among stroke patients. The annual demand for your drug is given by:

Q (p) = 230- 4p and the marginal cost of producing one unit of the drug is c = 2.50. 2.1. What is the profit-maximizing price for your drug? How much profit does your firm make each year while your drug is protected by the patent? 2.2. The patent on your drug is about to expire. New firms will soon be allowed to enter the market and produce an identical (but unbranded) version of your drug (a so-called generic drug). Assume that patients view the generic drugs as perfect substitutes for the branded drug. It costs f = 630 to build a plant which can produce such a generic drug at marginal cost of c = 2 (your own production technology is a little obsolete, thats why your own unit cost is higher). Government regulation requires pharmaceutical firms to fix the price of their products at the beginning of each year, after which the price cannot be changed anymore. Only new entrants in the market are allowed to file their prices after the due date. What is the limit price at which you can continue selling your drug without inviting entry by generic producers? How much profit do you make under limit pricing?