Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 225 Numeric ResponseEdit Unavailable. 225 correct. b. you compete against one other firm in a Cournot oligopoly. $ 180 Numeric ResponseEdit Unavailable. 180 correct. c . you compete against 19 other firms in a Cournot oligopoly.

Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. $ 225 Numeric ResponseEdit Unavailable. 225 correct. b. you compete against one other firm in a Cournot oligopoly. $ 180 Numeric ResponseEdit Unavailable. 180 correct. c . you compete against 19 other firms in a Cournot oligopoly.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14: Pricing Techniques And Analysis

Section: Chapter Questions

Problem 8E

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