To determine the optimal price per unit in each scenario, we can use the following formulas: a. Monopolist: � monopolist = � � 1 − Elasticity P monopolist = 1−Elasticity MC where � monopolist P monopolist is the monopolist's price per unit, � � MC is the marginal cost, and the elasticity is given as -1.5. b. Cournot Duopoly (2 firms): � Cournot = 3 4 ⋅ � � ⋅ ( 1 − 1 Elasticity ) P Cournot = 4 3 ⋅MC⋅(1− Elasticity 1 ) where � Cournot P Cournot is the Cournot duopoly price per unit. c. Cournot Duopoly (20 firms): � Cournot = 19 20 ⋅ � � ⋅ ( 1 − 1 Elasticity ) P Cournot = 20 19 ⋅MC⋅(1− Elasticity 1 ) where � Cournot P Cournot is the Cournot duopoly price per unit. Let's calculate each price.
