08 Question (4 points) E See page 439 The patent on a popular drug recently expired, and now the drug is generic, which has turned the market for this drug into a competitive market. All pharmaceutical companies producing this drug face the same costs. The cost function for a drug manufacturer is given by the following function: c(y)=3y310y2+200y where y stands for the number of doses produced and sold in a month. 1st attempt Part 1 (1.7 points) See Hint Suppose the market demand for this drug in any month is given by QD=485p. In the long-run equilibrium, we would expect there to be doses of the drug sold monthly, at an equilibrium price of $ per dose. We would expect that there would be firms in the market in the long-run equilibrium. Part 2 (0.6 point) See Hint Now that the drug has become more widely available, even more doctors than before have started prescribing the drug. Accordingly, the demand for the drug has increased. Specifically, the demand for the drug is now QD=665p. In the short run, we would expect firms will be earning profits. Part 3 (1.7 points) See Hint Given the higher demand, we would expect that in the long run there would be doses of the drug sold monthly at a price of $ per dose, and that there would be firms in the market