Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3. The marginal cost of producing the product is constant at $225, while average total cost at current production levels is $315.  Determine your optimal per unit price if: a. You are monopolist b. You compete against one other firm in a Cournot oligopoly c. You compete against 19 other firms in a Cournot oligopoly

Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
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Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3. The marginal cost of producing the product is constant at $225, while average total cost at current production levels is $315. 

Determine your optimal per unit price if:

a. You are 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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