A pharmaceutical company Eureka Bio has discovered a Corona vaccine that can be produced at constant marginal cost of R10. The company has entered into offtake dosage agreements with country A and B. Country A has a dosage demand of QA = 200 - PA and Country B has dosage demand QB = 160 -PB
a. If WHO introduces a regulation on the price of dosages, calculate the price, profits and dosages that Eureka can charge.
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