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

Micro Economics For Today
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Chapter10: Monopolistic Competition And Oligoply
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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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