Suppose a firm faces demand of q (P) = 500 -0.1P and costs of TC(q) =...

  

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Suppose a firm faces demand of q (P) = 500 -0.1P and costs of TC(q) = 10,000+ 90q. P-MC P 5. (2 points) A firm's markup (or Lerner Index) is given by with price on the horizontal axis and markup on the vertical axis. 6. (2 points) What is the price at which markup equals the inverse elasticity? Produce a graph of the markup Suppose a firm faces demand of q (P) = 500 -0.1P and costs of TC(q) = 10,000+ 90q. P-MC P 5. (2 points) A firm's markup (or Lerner Index) is given by with price on the horizontal axis and markup on the vertical axis. 6. (2 points) What is the price at which markup equals the inverse elasticity? Produce a graph of the markup

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A firms markup or Lerner Index is given by Produce a graph of the markup wit... View the full answer