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. $ 225 Numeric ResponseEdit Unavailable. 225 correct. b. you compete against one other firm in a Cournot oligopoly. $ 180 Numeric ResponseEdit Unavailable. 180 correct. 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. $ 225 Numeric ResponseEdit Unavailable. 225 correct. b. you compete against one other firm in a Cournot oligopoly. $ 180 Numeric ResponseEdit Unavailable. 180 correct. 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
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 2.5CE
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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. $ 225
Numeric ResponseEdit Unavailable. 225 correct. b. you
compete against one other firm in a Cournot oligopoly.
$ 180 Numeric ResponseEdit Unavailable. 180 correct. c
you compete against 19 other firms in a Cournot
oligopoly.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc0b4b17-cdb8-408a-87fa-377ceda7820f%2F1712eaea-e55e-438d-9008-80d2f093e931%2Ft5m1j9h_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. $ 225
Numeric ResponseEdit Unavailable. 225 correct. b. you
compete against one other firm in a Cournot oligopoly.
$ 180 Numeric ResponseEdit Unavailable. 180 correct. c
you compete against 19 other firms in a Cournot
oligopoly.
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