Answered: A firm has $3.5 millionin sales, a…

A firm has $3.5 millionin sales, a Lerner index of 0.67, and a marginal cost of $50, and competesagainst 800 other firms in its relevant market. What price does this firm charge its customers?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 2P

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A firm has $3.5 millionin sales, a Lerner index of 0.67, and a marginal cost of $50, and competesagainst 800 other firms in its relevant market.

What price does this firm charge its customers?

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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?
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