2.7 In 2009, the price of Amazons Kindle 2 was $359, while iSuppli (HIS) estimated that its...
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2.7 In 2009, the price of Amazon’s Kindle 2 was $359, while iSuppli (HIS) estimated that its marginal cost was $159. What was Amazon’s Lerner Index? What elasticity of demand did it face if it was engaging in short-run profit maximization? (Hint: See Solved Problem 11.3.)
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