Staff estimates that the market price elasticity of demand

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Your operations research staff estimates that the market price elasticity of demand is -2. The MC is constant at $150, and ATC at the current production rate is $225.

a) If you compete against a large number of other firms all producing the same product, what is your optimal selling price per unit?

b) If you are the only seller of this product and have no close competitors, what is your optimal selling price per unit?

c) If you compete against one other firm, both selling the same product, what is your optimal selling price?

d) If you compete against a large number of other firms, all producing differentiated products, what is your optimal selling price?

Reference no: EM131009865

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