Problem
An industry is known to face market price elasticity of demand e =-3. Suppose that this elasticity is approximately constant as the industry moves along its demand curve. The marginal cost in this industry is $10 per unit, and there are five firms in the industry. What would the Lerner index be at the Cournot equilibrium in this industry?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.