The demand for ethical prescription drugs is shown in Table 1 below: Table 1: The Demand...

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The demand for ethical prescription drugs is shown in Table 1 below: Table 1: The Demand for Ethical Prescription Drugs in the USA and UK It statistic -4.39 8 35 1. II. Variable Price Income (in thousands) Number of doctors Country (dummy variable) (D-1 for United Kingdom and D=0 for the USA) R-squared Beta -3.25 1.55 1.55 -7.54 0.99 2.14 -4.65 Based on the regression results in Table 1, what is the equation of the demand curve of ethical prescription drugs and describe the value of R- squared? Use the equation to explain factors that influence quantity demanded of prescription drugs in these two countries? (b) Suppose that the prescription drug industry is a monopolistic competitive market. Is there any deadweight loss in this market? Explain clearly by using diagrams and comparing it with perfect competition. (c) A monopolistic firm's demand function is P = 16244Q, and its total cost function is TC = 22,000 + 240-402 + Q³, where Q is output produced and sold. i. At what level of output and sales (Q) and price (P) will total profits be maximized? At what price (P) should the monopolistic firm shut down? The demand for ethical prescription drugs is shown in Table 1 below: Table 1: The Demand for Ethical Prescription Drugs in the USA and UK It statistic -4.39 8 35 1. II. Variable Price Income (in thousands) Number of doctors Country (dummy variable) (D-1 for United Kingdom and D=0 for the USA) R-squared Beta -3.25 1.55 1.55 -7.54 0.99 2.14 -4.65 Based on the regression results in Table 1, what is the equation of the demand curve of ethical prescription drugs and describe the value of R- squared? Use the equation to explain factors that influence quantity demanded of prescription drugs in these two countries? (b) Suppose that the prescription drug industry is a monopolistic competitive market. Is there any deadweight loss in this market? Explain clearly by using diagrams and comparing it with perfect competition. (c) A monopolistic firm's demand function is P = 16244Q, and its total cost function is TC = 22,000 + 240-402 + Q³, where Q is output produced and sold. i. At what level of output and sales (Q) and price (P) will total profits be maximized? At what price (P) should the monopolistic firm shut down?

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Step 11 a The equation of the demand curve of ethical prescription drugs cannot be obtained from the ... View the full answer