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 $344.3 million over the past 7 years. You expect that if you price at $200 you can sell 22,500 units per year and if you price at $100 you can sell about 45,950 units per year. Your marginal cost of production is $4.74. You face a constant elasticity demand curve where the price elasticity of demand is -1.03. What price should you set (round to nearest dollar)? Do you wish to enter?