Assignment
1. A pharmaceutical company with exclusive patent control over the new miracle flu drug can sell its output in two different countries, with demands as follows (not drawn to scale):
a. Which country do you think has higher per capita income? Why do you think so?
b. Calculate the elasticity of demand at Q = 200 for each country.
c. If the monpolist's TC = 0.50Q + 360, what quantities will it sell and what prices will it charge in each market? Draw a graph (or add to the ones give above) to illustrate your answer.