Based on the best available econometric estimates, the market elasticity of demand for your firm's product is –3. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. 2$ b. you compete against one other firm in a Cournot oligopoly. 2$ 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. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. 2$ b. you compete against one other firm in a Cournot oligopoly. 2$ C. you compete against 19 other firms in a Cournot oligopoly.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter14: Indirect Price Discrimination

Section: Chapter Questions

Problem 14.2IP

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