Multiple Choice
The figure above shows the demand and cost curves facing a price-setting firm.In profit-maximizing or loss-minimizing) equilibrium,the Lerner index is _____,and the elasticity of demand is ______.
A) 1 ;-1
B) 0.6; -1.667
C) 0.5; -2.0
D) 0.667; -1.5
E) 1.33; -0.75
Correct Answer:
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