A firm has $1,900,000 in sales, a Lerner index of 0.59, and a marginal cost of $40, and competes against 1000 other firms in its relevant market. Instruction: Enter your responses rounded to two 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?

A firm has $1,900,000 in sales, a Lerner index of 0.59, and a marginal cost of $40, and competes against 1000 other firms in its relevant market. Instruction: Enter your responses rounded to two 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?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 13CQ

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