Now, assume your buffalo wing firm is in a Cournot oligopoly with 3 additional firms. The market elasticity of demand for buffalo wings is -0.70. Find your firm’s elasticity of demand.   Now find the profit-maximizing price for your firm if your marginal cost is $3.70.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 9SQP
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In this assignment, we’re assuming you’re a manager of different types of buffalo wing restaurants. I’ll give different scenarios- some will require math and others will require writing.

 

Cournot Oligopoly

 

2. Now, assume your buffalo wing firm is in a Cournot oligopoly with 3 additional firms. The market elasticity of demand for buffalo wings is -0.70. Find your firm’s elasticity of demand.

 

Now find the profit-maximizing price for your firm if your marginal cost is $3.70.

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