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. $

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
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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.

 
 
 
 
 
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