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Suppose That the Inverse Market Demand for a New Vaccine

Question 3

Multiple Choice

Suppose that the inverse market demand for a new vaccine is P = 21,000 - 5Q, and the marginal cost is $10 per vaccine. Assuming that the manufacturer is profit-maximizing, what will be the market price of this new vaccine?


A) 15,000
B) 17,250
C) 15,750
D) 14,000
E) 13,500

Correct Answer:

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