Question: Suppose that the FDA does not regulate Imprimisand allows its drug to immediately compete with Daraprim. Under Cournot competition and the assumption that the competitor

Suppose that the FDA does not regulate Imprimisand 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? Turing Pharmaceuticals charged $75,000 per 100 pill bottle, MC of Daraprim is $100 for a 100 pill bottle (or $1/pill), the elasticity of demand is -1.0013. Can you please explain each step?

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