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Homework answers / question archive / Suppose a firm's inverse demand curve is P = 100 ? Q and its marginal cost is constant at $20

Suppose a firm's inverse demand curve is P = 100 ? Q and its marginal cost is constant at $20

Marketing

Suppose a firm's inverse demand curve is P = 100 ? Q and its marginal cost is constant at $20. Show that the value of the Lerner index at the profit-maximizing quantity is 0.67. Find the corresponding price elasticity of demand.

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