Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.5. The marginal cost of producing the product is constant at $200, while average total cost at current production levels is $240. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 200 b. you compete against one other firm in a Cournot oligopoly. $ c. you compete against 19 other firms in a Cournot oligopoly. $ 204.08

Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.5. The marginal cost of producing the product is constant at $200, while average total cost at current production levels is $240. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 200 b. you compete against one other firm in a Cournot oligopoly. $ c. you compete against 19 other firms in a Cournot oligopoly. $ 204.08

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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