Using the information in the "Botox Revisited" application, determine how much Allergan loses by being a single-price monopoly rather than a perfectly price-discriminating monopoly. Assume there are no fixed costs.   By not price discriminating, Allergan loses $____million per year. (Round your answer to the nearest million.)

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Using the information in the "Botox Revisited" application, determine how much Allergan loses by being a single-price monopoly rather than a perfectly price-discriminating monopoly. Assume there are no fixed costs.

 

By not price discriminating, Allergan loses $____million per year. (Round your answer to the nearest million.)

825-
775-
725-
675-
625-
575-
525-
475-
425-
375-
325-
275-
225-
175-
125-
75-
25
P, $ per vial
0.5
1 MR
1.5
2 D
Q. Millions of vials of Botox per year
MC
2.5
Transcribed Image Text:825- 775- 725- 675- 625- 575- 525- 475- 425- 375- 325- 275- 225- 175- 125- 75- 25 P, $ per vial 0.5 1 MR 1.5 2 D Q. Millions of vials of Botox per year MC 2.5
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