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Based on the best possible econometric estimation, the market's demand elasticity for your product is -2. The marginal cost of producing the product is constant
Based on the best possible econometric estimation, the market's demand elasticity for your product is -2. The marginal cost of producing the product is constant at SEK 100. Calculate the optimal unit price if the following applies and comment briefly on why the prices differ:
1. There are two companies on the market that act according to Cournot
.2. There are 19 companies on the market that act according to Cournot.
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