Blueberry bushes can be produced at a constant marginal cost of $10 per bush. there are different types, that grow to different heights. Type 1 which grows up to 1 meter high is priced at $20 per plant, and type 2 which grows to 50 cm in heightis priced at $30 per plant. What are the Lerner indices for these two plants?

Select one:

Both equal one.

2 and 3, respectively

1 and 2, respectively

0.5 and 0.67, respectively

2.The oligopoly model that is most appropriate when one large firm usually takes the lead in setting price is the ________ model.

Select one:

Cournot

Stackelberg

game theory

Prisoners' Dilemma

3.Suppose a firm produces identical goods for two separate markets and practices third-degree price discrimination. In the first market the firm charges $30 per unit, and it charges $22 per unit in the second market. Which of the following is true?

Select one:

Market 2 has a more elastic demand curve.

The Lerner Index is higher in market 2.

Market 1 has a more elastic demand curve.

Both markets have the same elasticities of demand.

We cannot comment on the respective elasticities of demand.

4.

P 5/0 MC MR Quantity