An industry is known to face market price elasticity of


An industry is known to face market price elasticity of demand -0.5. Suppose that this elasticity is approximately constant as the industry moves along its demand curve. The marginal cost in this industry is $50 per unit, and there are four firms in the industry. 

  1. What is the Lerner index in this industry? 
  2. What is the Oligopoly price?

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