Suppose that a monopolist faces a constant marginal cost of 6 and a constant (firm) elasticity of
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Suppose that a monopolist faces a constant marginal cost of 6 and a constant (firm) elasticity of demand of -2. Using the Lerner Index, what is the monopoly price and what is the mark-up (difference between price and marginal cost)?
Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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