Question: 5) Suppose that the FDA does not regulate Imprimis and allows its drug to immediately compete with Daraprim. Under Cournot competition and the assumption that
5) Suppose that the FDA does not regulate Imprimis and allows its drug to immediately compete with Daraprim. Under Cournot competition and the assumption that the competitor faces the same marginal cost of $100/bottle, what is the profit maximizing market price of the drug?
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