What is the lerner index in this industry what is the


An industry is known to face market price elasticity of demand -0.5. Suppose that this elasticity is approximately constant as the industry moves along its demand curve. The marginal cost in this industry is $50 per unit, and there are four firms in the industry.

  • What is the Lerner index in this industry?
  • What is the Oligopoly price?

Solution Preview :

Prepared by a verified Expert
Business Management: What is the lerner index in this industry what is the
Reference No:- TGS02409155

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)