Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.5. The marginal cost of producing the product is constant at $200, while average total cost at current production levels is $240. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 200 b. you compete against one other firm in a Cournot oligopoly. $ c. you compete against 19 other firms in a Cournot oligopoly. $ 204.08

Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.5. The marginal cost of producing the product is constant at $200, while average total cost at current production levels is $240. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 200 b. you compete against one other firm in a Cournot oligopoly. $ c. you compete against 19 other firms in a Cournot oligopoly. $ 204.08

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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My dear expert bro hand written not allowed please dear.
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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Give explanation of the correct option and explanation of the incorrect options. Note: Dear expert hand written is not allowed.
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