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 $100, while average total cost at current production levels is $175.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.  c. you compete against 19 other firms in a Cournot oligopoly.

A new restaurant – Uovo – has just opened in West L.A. It is serving the upscale market, with truly outstanding pasta that is flown in overnight from Bologna, Italy. Uovo offers a fixed-price menu with appetizer, three dishes of pasta, and a delicious tiramisu for dessert. The restaurant faces the following demand function: Q = 600 - 4P where Q is the number of guests per day. The marginal cost is constant at $50 per customer (including expenses for ingredients and personnel). The restaurant is paying a rent of $2,000 per day. What is the profit-maximizing number of guests that Uovo should serve each day, and what price should Uovo charge to maximize profit? What is the elasticity of demand at the optimal price and quantity? Is demand elastic or inelastic at this point? From what we learned in class, does it make sense for the restaurant to operate in this area of the demand curve (elastic/inelastic part)? What is the profit of the restaurant at the optimal price and quantity, and what…

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

You are the manager of a monopolist that produces women shoes and faces a random marginal cost. The demand for women shoes is O = 1000 - 0.1P Marginal cost can be constant at either $60 with a probability of 50% or $40 with a probability of probability of 50%. Draw a graph and plot the demand for shoes. Derive the marginal revenue curve and plot it on the graph. Find the price and output that maximize profits. Find the firm's profits.