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What price does the firm charge it customers

Question: A firm has $1 Million in Sales, a Lerner Index of 0.65 and a marginal cost of $35 and competes against 1,000 other firms in its relevant market.

1. What price does the firm charge it customers? Show formula to explain how do this.

2. By what factor does this firm mark up its price over marginal cost?

3. Do you thinkthis firm enjoys much market power? Explain your findings.

Show how the Lerner Index is important in this problem?

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Solution Preview :

Prepared by a verified Expert

Microeconomics: What price does the firm charge it customers

Reference No:- TGS01748993

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Explain self-assessment

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Microeconomics: What price does the firm charge it customers

Reference No:- TGS01748993

Recent Questions Asked Microeconomics

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