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Consider a monopoly with inverse demand given by P(q) = a - bq and cost function c(q) = cq, where a > c > 0
Consider a monopoly with inverse demand given by P(q) = a - bq and cost function c(q) = cq, where a > c > 0 and b > 0.
- What is the marginal revenue?
- What is the Lerner index?
- What is the elasticity of demand in absolute value?
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
9th edition
9781259896422, 1259290611, 1259896420, 978-1259290619
