Determine optimal per unit price in given condition

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Reference no: EM131789833

Question: 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 $225, while average total cost at current production levels is $300. Determine your optimal per unit price if:

Instruction: Round your answers 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.

Reference no: EM131789833

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