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?
- Anonymous8 years agoFavorite 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