Need help with my assignment! Please help, I will upvote, please have all the relevant info and/or graphs according to the questions.
Show transcribed image texta) Total revenue = Price * quantity Marginal revenue = Change in TR / change in quantity Q P TR MR 0 1000 $0 – 200 900 180000 900 400 800 320000 700 600 700 420000 500 800 600 480000 300 10…View the full answerTranscribed image text: [A new drug called ‘LowG’, taken together with any food, reduces the glycemic index (a measure of the impact of the food on blood sugar) by 50%. Annual demand for this new medication can be described by the following table:] Quantity (millions of Price ($) milligrams) 0 1000 200 900 400 800 600 700 800 600 1000 500 1200 400 1400 300 1600 200 1800 100 2000 0 a) [Rache, a pharmaceutical company, holds the patent on LowG and therefore is the only legal producer of the drug for the next 15 years. Calculate total revenue (TR) and marginal revenue (MR) for Rache at each price. (2 marks)] b) [Suppose for Rache, production of this drug involves an annual fixed cost of $200,000 and a marginal cost of $300 per million milligrams of the drug. Find the profit maximizing quantity produced and the price for Rache. Show how you calculated this equilibrium and demonstrate it graphically. (5 marks)] c) [Suppose that the cost of seeking a patent is equal to $0.5 million, and that a patent lasts for 15 years. Is it worthwhile for Rache to seek a patent to produce this medication, if it knows its costs and the demand information (as provided above) beforehand? Assume constant macroeconomic conditions for the next 15 years for simplicity. Explain your answer. (3 marks)]