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Suppose a Firm's Inverse Demand Curve Is P = 150

Question 127

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Suppose a firm's inverse demand curve is P = 150 - 5Q, its Lerner index is 0.8 at the profit-maximizing quantity, and its marginal cost is constant at $10. What is the profit-maximizing quantity?

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The Lerner index = (P - MC)/P,...

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