In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch Sport was $73. The price was $363. Wi cost ratio? What was its Lerner Index? If Apple is a short-run profit-maximizing monopoly, what elasticity of demand did Apple believe it faced? Apple's price/marginal cost ratio was 4.97. (Enter your response rounded to two decimal places.) The value of Apple's Lerner Index (L) was .80. (Enter your response rounded to two decimal places.) Apple's elasticity of demand (e) is. (Enter your response rounded to two decimal places and include a minus sign.)
In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch Sport was $73. The price was $363. Wi cost ratio? What was its Lerner Index? If Apple is a short-run profit-maximizing monopoly, what elasticity of demand did Apple believe it faced? Apple's price/marginal cost ratio was 4.97. (Enter your response rounded to two decimal places.) The value of Apple's Lerner Index (L) was .80. (Enter your response rounded to two decimal places.) Apple's elasticity of demand (e) is. (Enter your response rounded to two decimal places and include a minus sign.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch Sport was $73. The price was $363. What was Apple's price/marginal
cost ratio? What was its Lerner Index? If Apple is a short-run profit-maximizing monopoly, what elasticity of demand did Apple believe it faced?
Apple's price/marginal cost ratio was 4.97. (Enter your response rounded to two decimal places.)
The value of Apple's Lerner Index (L) was 80. (Enter your response rounded to two decimal places.)
Apple's elasticity of demand (e) is. (Enter your response rounded to two decimal places and include a minus sign.)
Assume
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ter your re
Assume tha
pple's price/
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Transcribed Image Text:In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch Sport was $73. The price was $363. What was Apple's price/marginal
cost ratio? What was its Lerner Index? If Apple is a short-run profit-maximizing monopoly, what elasticity of demand did Apple believe it faced?
Apple's price/marginal cost ratio was 4.97. (Enter your response rounded to two decimal places.)
The value of Apple's Lerner Index (L) was 80. (Enter your response rounded to two decimal places.)
Apple's elasticity of demand (e) is. (Enter your response rounded to two decimal places and include a minus sign.)
Assume
rice/marc
t elasticity
ter your re
Assume tha
pple's price/
dtv
13
MacBook Air
80
F9
F7
esc
FS
F3
F4
F1
F2
&
@
#3
2$
4
7
8.
1
2
W
E
Y
U
Q
tab
K
A
S
F
caps lock
C
shift
fn
control
option
command
* 00
B
>
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