Bancroft Pharmaceuticals has a patent on a new medication used to trea

Bancroft Pharmaceuticals has a patent on a new medication used to treat high blood pressure, so it is the monopoly seller of this new drug product.

The marginal cost of producing one dose of the drug is $10, and the elasticity of demand for the product is -3. What is the profit maximizing monopoly price for this patented drug product? A) $10
B) $12.50
C) $15
D) $30

ANSWER

C