The Central Bank of Malaysia decides to peg the Malaysian Ri…

The Central Bank of Malaysia decides to peg the Malaysian Ringgit to the Singapore Dollar to stabilize its currency’s value in international markets. However, instead of fixing it at a single rate, they allow the Ringgit to fluctuate within a band of ±1% from the pegged rate. This means if the Singapore Dollar is at SGD 1 = MYR 3.00, the Ringgit can move between 2.97 and 3.03 against the Singapore Dollar. Question: Which of the following scenarios best illustrates a soft peg exchange rate regime?

You developed a new drug, TheLorax, and you will be the mono…

You developed a new drug, TheLorax, and you will be the monopolist in the market. Developing the drug cost $844.3 million over the past 6 years. You expect that if you price at $300 you can sell 10,000 units per year and if you price at $100 you can sell about 31,000 units per year. Your marginal cost of production is $0.88. You face a constant elasticity demand curve where the price elasticity of demand is -1.03. 1. What price should you set (round to nearest dollar)? 2. Do you wish to enter?