Question

Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is 2. The marginal cost of producing the product is constant at $ 150, while average total cost at current production levels is $ 225. Determine your optimal per unit price if:
a. You are a monopolist.
b. You compete against one other firm in a Cournot oligopoly.
c. You compete against 19 other firms in a Cournot oligopoly.



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  • CreatedApril 18, 2014
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