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businesseconomicseconomics questions and answers, problem #3 1. a firm has $2.5 million in sales, a lerner index of 0.85, and a marginal cost of $25, and competes against 1000 other firms in its relevant market. 1.a. what price does this firm charge its customers? 1.b. by what factor does this firm mark up its price over marginal cost? interpret your result. 2. an industry consists of three firms with
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Question: , Problem #3 1. A Firm Has $2.5 Million In Sales, A Lerner Index Of 0.85, And A Marginal Cost Of $25, And Competes Against 1000 Other Firms In Its Relevant Market. 1.A. What Price Does This Firm Charge Its Customers? 1.B. By What Factor Does This Firm Mark Up Its Price Over Marginal Cost? Interpret Your Result. 2. An Industry Consists Of Three Firms With
, Problem #3
1. A firm has $2.5 million in sales, a Lerner index of 0.85, and a marginal cost of $25, and competes against 1000 other firms in its relevant market.
1.a. What price does this firm charge its customers?
1.b. By what factor does this firm mark up its price over marginal cost? Interpret your result.
2. An industry consists of three firms with sales of $300,000$450,000, and $550,000.
2. a. Calculate the Herfindahl-Hirschman index (HHI).
2. b. Calculate the four-firm concentration ratio (C4).
market.
