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2. (a) 03) Suppose the government offers a $1 billion prize to the rst drug company that develops a vaccine for the virus that causes COVID19. What are the costs and benets associated with such a policy? A drug manufacturer with a patent on a drug is a monOpolist in two markets, A and B. The demand functions in the two markets are, reSpectively: GAPA) = looPA 93(393) = 802333 where qA and q3 denote the number of prescriptions and pA and 303 are the unit prices. The marginal cost of production is c = 20 and there are no xed costs. (i) Find the rm's prot-maximizing prices and prots in markets A and B, assuming that resale or arbitrage between the markets is impossible (transportation cost is innite, t = 00). (ii) Suppose now that the cost of transportation between the markets is t = 10. What are the rm's prot-maximizing prices and prots in this case? (iii) Suppose nally that the transportation cost between the markets is zero, t = 0. What are the optimal prices and prots in this case