Suppose that Kuhn Pharmaceuticals has a patent on the drug, Wondermeditol, until the year 2030. The firm in 2018 was making economic losses due to high production costs. Graph the firm's profit/loss situation in 2018. Shade the area of profit/loss, label Pm and Qm.
The graphical representation of the Firm is attached.
Explanation:
As the firm is functional still, this meant the losses were incurred however it was made covered in its variable cost, via the area under shaded is the overall loss.
