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3. Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.5. The marginal cost of producing the
3. Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2.5. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $276. Determine your optimal per unit price if: a) you are a monopolist. b) you compete against one other firm in a Cournot oligopoly. c) you compete against 9 other firms in a Cournot oligopoly. d) you compete against 20 other firms in a Cournot oligopoly
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