Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -1.5. The marginal cost of producing the product is constant at $125, while average total cost at current production levels is $190. Determine your optimal per unit price if: Instruction: 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 -1.5. The marginal cost of producing the product is constant at $125, while average total cost at current production levels is $190. Determine your optimal per unit price if: Instruction: 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. $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -1.5. The marginal cost of producing the product is constant at $125, while average total cost at current production levels is $190.
Determine your optimal per unit price if:
Instruction: 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.
$
Determine your optimal per unit price if:
Instruction: 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.
$
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