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A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.

a. What price does this firm charge its customers? SHOW all work
b. By what factor does this firm mark up its price over marginal cost? SHOW all work
c. Do you think this firm enjoys much market power? describe

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938720

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