Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Lerner index is 0.71. Find the markup over marginal cost. An industry commonly suggests using a markup factor of 9.22 to price goods. Find

  1. The Lerner index is 0.71. Find the markup over marginal cost.
  2. An industry commonly suggests using a markup factor of 9.22 to price goods. Find the industry Price(Percent) Contribution Margin.
  3. There are 5 firms with sales of firm1=$6.0million, firm2=$15.0million, firm3=$16.0 million, and the remaining two firms have $4.0 million each. Firm1 and Firm2 wish to merge. How much does the Herfindahl Hirschman Index change if the firms are allowed to merge?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How China Escaped Shock Therapy The Market Reform Debate

Authors: Isabella M Weber

1st Edition

0429953968, 9780429953965

More Books

Students also viewed these Economics questions

Question

4. What means will you use to achieve these values?

Answered: 1 week ago