Question
A firm has $2,200,000 in sales, a Lerner index of 0.61, and a marginal cost of $50, and competes against 900 other firms in its
A firm has $2,200,000 in sales, a Lerner index of 0.61, and a marginal cost of $50, and competes against 900 other firms in its relevant market.
Instruction: Round your answers to 2 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?
Step by Step Solution
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Step: 1
rd Calculation of Lerner Index PMC P P50 ...
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
