a) Identify the most important source(s) of market power in the following markets and briefly explain...

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Economics

a) Identify the most important source(s) of market power in thefollowing markets and briefly explain your answers:
i. Small town bars with liquor licenses
ii. Apple iPad
iii. Electronic commerce (Amazon)
iv. Brand-name prescription drugs
v. Netflix
b) Calculate the Lerner Index for the following profitmaximizing firms:
i. Netflix: price = 10, marginal cost = 4
ii. Shell gasoline: elasticity = 0.6
c) Provide an example cross price elasticity for the followingproducts and briefly justify your answer:
i. The price of Apple iPhone X and the quantity of SamsungGalaxy S10
ii. The price of BP gasoline and the quantity of Ford ExpeditionSUVâ€™s
iii. The price of Starbuckâ€™s latteâ€™s and the quantity of Nikeshoes

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Answer to the first question is provided below a i Small town bars with liquor licenses There is monopolistic competition in this market Few shops get the license and hence there are few sellers with many See Answer

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