A pharmaceutical firm has just received a patent on a drug. It can sell in two markets. The firm has estimated that the inverse demand curve in the first market is
p1=25-.0001q1
and the inverse demand in the second market is
p2=20-.0002q2
If the Marginal cost of the drug is $5, how many would the firm sell in each market? What prices would it set? What condition must hold for different prices to emerge in the two markets?
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