Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. 2$ b. you compete against one other firm in a Cournot oligopoly. 24 C. you compete against 19 other firms in a Cournot oligopoly.
Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. 2$ b. you compete against one other firm in a Cournot oligopoly. 24 C. you compete against 19 other firms in a Cournot oligopoly.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost
of producing the product is constant at $150, while average total cost at current production levels is $215.
Determine your optimal per unit price if:
Instructions: Enter your responses rounded to two decimal places.
a. you are a monopolist.
2$
b. you compete against one other firm in a Cournot oligopoly.
$
C. you compete against 19 other firms in a Cournot oligopoly.
2$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F56e7940b-bc81-43d8-915c-55572fca8d0b%2F95294bc2-c409-491d-a841-d33e1008bbc0%2Fibgudkn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost
of producing the product is constant at $150, while average total cost at current production levels is $215.
Determine your optimal per unit price if:
Instructions: Enter your responses rounded to two decimal places.
a. you are a monopolist.
2$
b. you compete against one other firm in a Cournot oligopoly.
$
C. you compete against 19 other firms in a Cournot oligopoly.
2$
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