Question
An industry comprises three firms A, B and C.Firm A has market share of 50% and has marginal cost of 66. Firm B has market
An industry comprises three firms A, B and C.Firm A has market share of 50% and has marginal cost of 66. Firm B has market share of 30% and has marginal cost of 90.Firm C has market share of 20% and has marginal cost of 100.If the market price is 160, what is the Lerner Index in this industry?
a.
0.5
b.
0.6
c.
0.3
d.
0.4
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
