Question: 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

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 (Imprimis)? Also, how do you find out the demand function?

(elasticity of demand) = -1.0013

QDaraprim1 = 8,821

QDaraprim2 = 5,000

PDaraprim1 = $1,700

PDaraprim2 = $75,000

PImprimis = $1

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