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Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -3. 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:
Instruction: Round your answers to two decimal places.
a. You are a monopolist.
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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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