Based on the best available econometric estimates, the market elasticity of demand for your firm's product is
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Question:
Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $225.
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.
$
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