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 $100, while average total cost at current production levels is $175.
Determine your optimal per unit price if:
Instructions: Enter your responses rounded 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. $