Question: Could you please help me solve this problem step by step, thanks:D The following table shows production costs of an antibiotic drug for the current

Could you please help me solve this problem step by step, thanks:D

thanks:D The following table shows production costs of an antibiotic drug for

The following table shows production costs of an antibiotic drug for the current production level of 5 million ltg per year (assume a constant average and marginal cost of production). variable cost variable cost - The firm currently has an exclusive patent on the drug. which makes it the only producer of the (tug in the market. The market demand for the drug is given as follows: a) At the current production level of 5 million kg per year, the rm is charging $11 per kg as shown in the table above. is the firm maximizing prot? Why or why not? Use the following table to assist with your answer (2 marks) b) What price should the rm charge? How much is the annual prot then? (2 marks)

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