Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.0. The marginal cost of producing the product is constant at $75, while average total cost at current production levels is $140. 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. $ 139 * c. you compete against 19 other firms in a Cournot oligopoly. $ 130 x

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.0. The marginal cost
of producing the product is constant at $75, while average total cost at current production levels is $140.
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.
$ 139 *
c. you compete against 19 other firms in a Cournot oligopoly.
S
130
Transcribed Image Text:Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.0. The marginal cost of producing the product is constant at $75, while average total cost at current production levels is $140. 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. $ 139 * c. you compete against 19 other firms in a Cournot oligopoly. S 130
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