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Homework answers / question archive / Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2
Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2. The marginal cost of producing the product is constant at $150, while the average total cost at current production levels is $225. 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
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