A firm has $1 million in sales, a Lerner index of 0.65, and a marginal cost of
Question:
a. What price does this firm charge its customers?
b. By what factor does this firm mark up its price over marginal cost?
c. Do you think this firm enjoys much market power? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (18 reviews)
a 100 To see this solve the Lerner index formula for P to ob...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Question Posted:
Students also viewed these Economics questions
-
A firm has 1 million shares of common stock outstanding with a book value of $5 per share. The firm also has total assets with a book value of $10 million. There is no preferred stock. What are the...
-
A firm has 1 million shares of common stock outstanding with a book value of $15 per share. The firm also has total assets with a book value of $20 million. There is no preferred stock. What are the...
-
The graph below illustrates a monopolist in the short run. a. How many units will this firm produce? How can you tell? b. What price will this firm charge? How can you tell? c. What is the maximum...
-
A trainee in a medical lab will be released to work on her own when her results agree with those of an experienced worker at the 95% confidence level. Results for a blood urea nitrogen analysis are...
-
Find the probability that fewer than 20 cars are white. Is 20 a significantly low number of white cars? Assume that 100 cars are randomly selected. Refer to the accompanying graph, which shows the...
-
The Earths magnetic field is produced by the fl ow of electrons within its molten interior. If the fl ow is in the form of a ring of current in the plane of the equator, in which direction must the...
-
The composite bar consists of a 20-mm-diameter A-36 steel segment AB and 50-mm-diameter red brass C83400 end segments DA and CB. Determine the displacement of A with respect to B due to the applied...
-
Maura Lowe is a payroll accountant for N & L Company. She prepares and processes the companys payroll on a weekly basis and has been at N & L for only three months. All employees are paid on Friday....
-
What are 2-3 strategies that enhance ethics, labor relations, and work conditions?
-
In the system of Figure, Xc(j?) and H(e j? ) are as shown. Sketch and label the Fourier transform of y c (t) for each of the following cases: (a) 1/T 1 = 1/T 2 = 10 4 ? (b) 1/T 1 = 1/T 2 = 2 ? 10 4...
-
Suppose the own price elasticity of market demand for retail gasoline is 0.9, the Rothschild index is 0.6, and a typical gasoline retailer enjoys sales of $1.2 million annually. What is the price...
-
Under what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger Herfindahl-Hirschman index of 2,900 if the postmerger index is...
-
Dale is a CPA and handles many tax returns during the year. Upon audit of one of his clients returns, it was discovered that Dale took an unreasonable position on the clients tax return that the IRS...
-
Identify at least five skills you have obtained through your general education courses that will make you successful at this job. Demonstrate with at least two examples how your newly acquired...
-
WhStudents will be able to convert numbers by using the "making 10" strategy when adding and subtracting problems within 20.at is a specific example of a formal-formative assessment using NY2OA2a and...
-
def hailstone(num): """ >>> hailstone(10) [10, 5, 16, 8, 4, 2, 1] >>> hailstone(1) [1] >>> hailstone(27) [27, 82, 41, 124, 62, 31, 94, 47, 142, 71, 214, 107, 322, 161, 484, 242, 121, 364, 182, 91,...
-
For the past 20 years, Ginny has operated her tailoring and alterations business out of a 700-square-foot, commercial office building, at 4000 Central. Last year, Ginny signed a five-year lease with...
-
CS 110, Programming Fundamentals I Lab 6: Files and methods Upload to Canvas In this lab you'll gain experience with Files, random numbers, and methods. What you learn in this lab should be helpful...
-
From the different economists introduced, who do you think has had the most influence on modern behavioural economics and why?
-
You deposit $10,000 in a savings account that earns 7.5% simple interest per year. What is the minimum number of years you must wait to double your balance? Suppose instead that you deposit the...
-
The following compound is unknown, but you are contemplating its synthesis and characterization. Predict its NMR spectrum under each of the following assumptions: (a) Jab = Jbc (b) Jab Jbc. Br b...
-
Describe the relationship among profit, business risk, and the satisfaction of customers needs.
-
What are the four basic economic questions? How are they answered in a capitalist economy?
-
Explain the invisible hand of capitalism.
-
ow do synergistic dynamics emerge within high-performance teams, and what role do diverse skill sets, complementary roles, and shared goals play in fostering collaborative innovation and collective...
-
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead...
-
You will complete two case studies over the course of the semester. These are to be completed individually. Each case study is found in the textbook and there are questions there to help guide your...
Study smarter with the SolutionInn App