A firm has $2,200,000 in sales, a Lerner index of 0.61, and a marginal cost of $50,

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Question:

A firm has $2,200,000 in sales, a Lerner index of 0.61, and a marginal cost of $50, and competes against 900 other firms in its relevant market.

Instruction: Round your answers to 2 decimal places.

a. What price does this firm charge its customers?

$

b. By what factor does this firm mark up its price over marginal cost?