Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it f
Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it faces is p = 130 – 2Q. What is the Lerner index of this profit-maximizing monopolist?
A) 0.222
B) 0.35
C) 0.444
D) 0.50
ANSWER
C
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