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Consider a market with 8 identical producers, each with a marginal cost of production of 7. Demand is of the constant elasticity type, with a
Consider a market with 8 identical producers, each with a marginal cost of production of 7. Demand is of the constant elasticity type, with a price elasticity of demand that is constant at -3.0. If the Cournot model describes competition in this market, what is the value of the Lerner index? Your answer must be correct to the second decimal place.
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