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.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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