(A)
Optimal per unit
(A)
Explanation of Solution
E = EF = EM
E = -2
MC = $150
Under
Price under monopolist is $300.
(B)
Optimal per unit price when firm compete against one firm in Cournot oligopoly is to be ascertained.
(B)
Explanation of Solution
Competing against one other firm in Cournot Oligopoly, N = 2
Therefore, price is $200.
(C)
Optimal per unit price when firm compete with 19 other firms is to be ascertained.
(C)
Explanation of Solution
Competing against other 19 firms in Cournot Oligopoly , N = 20
Therefore , Price is $153.84
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Chapter 11 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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