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Suppose the market for a certain pharmaceutical drug consists of domestic (United States) consumers and foreign consumers. The drug's marginal cost is constant at $5 per dose. The demand schedules for both regions are given below.
US
Foreign
Price
Quantity
$60
1,000
200
55
1,500
250
50
2,500
400
45
4,000
600
40
8,000
35
14,000
2,000
30
20,000
3,500
25
30,000
7,000
20
40,000
16,000
15
55,000
35,000
10
65,000
75,000
5
77,000
150,000
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