Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -1.5. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 450 b. you compete against one other firm in a Cournot oligopoly. $ 225 c. you compete against 19 other firms in a Cournot oligopoly. $ 145

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Problem 11-01 (algo)
Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -1.5. The marginal cost of
producing the product is constant at $150, while average total cost at current production levels is $215.
Determine your optimal per unit price if:
Instructions: Enter your responses rounded to two decimal places.
a. you are a monopolist.
450
b. you compete against one other firm in a Cournot oligopoly.
LA
$
225
c. you compete against 19 other firms in a Cournot oligopoly.
$ 145 x
www
Next >
Transcribed Image Text:Problem 11-01 (algo) Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -1.5. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. 450 b. you compete against one other firm in a Cournot oligopoly. LA $ 225 c. you compete against 19 other firms in a Cournot oligopoly. $ 145 x www Next >
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