Return to question Item10 Item 10 8 points Based on the best available econometric estimates, the market elasticity of demand for your firm’s product…

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Item10

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 average total cost at current production levels is $225.

Determine your optimal per unit price if:

Instructions:

a. You are a monopolist.

$ 300 

b. You compete against one other firm in a Cournot oligopoly.

$ 200 

c. You compete against 19 other firms in a Cournot oligopoly.

$ _____________________????