A firm sells 10 units at a price of 20 the marginal cost of


Lerner Index

A firm sells 10 units at a price of 20. The marginal cost of production for this firm is

MC(q)=5+q.

a) What is this firm’s Lerner Index?

b) Provide an interpretation of this value.

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Business Economics: A firm sells 10 units at a price of 20 the marginal cost of
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