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Determine your optimal per unit price

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Question - Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -1.5. The marginal cost of producing the product is constant at $250, while average total cost at current production levels is $340. Determine your optimal per unit price if:

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: EM133144594

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