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 $225, while average total cost at current production levels is $315. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. 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.

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 $225, while average total cost at current production levels is $315. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. 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.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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