Question
A firm has $2,000,000 in sales, a Lerner index of 0.56, and a marginal cost of $35, and competes against 900 other firms in its
A firm has $2,000,000 in sales, a Lerner index of 0.56, and a marginal cost of $35, and competes against 900 other firms in its relevant market.
Instruction:Enter your responses rounded to two decimal places.
a. What price does this firm charge its customers?
$
b. By what factor does this firm mark up its price over marginal cost?
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
