A firm has $2,000,000 in sales, a Lerner index of 0

Marketing Jan 15, 2021

A firm has $2,000,000 in sales, a Lerner index of 0.56, a marginal cost of $35, and competes against 900 other firms in its relevant market. Based on this information, answer the following questions below. Round your answers to two decimal places.

a) What price does this firm charge its customers?

b) Which factor does this firm mark up its price over marginal cost?

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