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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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.)
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