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The demand for a patented drug can be written asP=2,000-Qwhere P is price and Q is quantity. The marginal cost of production and distribution is constant and equal to 10.
a. Find the competitive price and output.
b. Find consumer surplus.
c. Find the patent holder's profit maximizing price and output.
d. Find the patentee's profit.
e. Find the social welfare loss - if any.
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