brian asked in Social ScienceEconomics · 8 years ago

help on economics homework?

A firm sells a product at price = $100, and a MC = $30. What is the P/MC ratio?

What is Lerner Index? What is the demand elasticity the firm believes faces?

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  • Anonymous
    8 years ago
    Favorite Answer

    P/MC ratio is 100/30 which is 3.33

    Lerner Index is P-MC/P which is 100-30/100 which is 0.7

    L= -1/EofD which will be -1.43

    http://en.wikipedia.org/wiki/Lerner_index

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