Why is the ratio of the monopolys price to its marginal cost, p/MC, larger if the demand
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Why is the ratio of the monopoly’s price to its marginal cost, p/MC, larger if the demand curve is less elastic at the optimum quantity? Can the demand curve be inelastic at that quantity?
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The Lerner Index or price markup is the ratio of the difference between price and marginal cos...View the full answer
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Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
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