Cool Economic Beans also runs a subsidiary specializing in the production and sale of candy jellybeans. This subsidiary generates $2million in sales with marginal costs of production at $90 and its economics division measures a Lerner index of 0.61 for the candy jelly beans division. The competition involves 400 other firms in the jelly beans industry.

1. At what price should Cool Economic Beans sell its jelly beans?

2. What is the mark-up factor for jelly beans?

3. How much price competition exists in the jelly beans market? Explain.