Assume the graph attached represents the market demand for apatented prescriptio

Assume the graph attached represents the market demand for apatented prescription drug together with the firm-level marginalcost and average cost functions for producing the drug. Assumethese cost curves do not reflect R&D costs of developing thisdrug but only reflect production costs of the drug once theformula for it is known. (Note: the diagram assumes that in theoutput range from 250-400 thousand MC =ATC = $20). Rising MC atQ>400000 increases ATC.)