Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. assume there are two firms in two different indust

Assume there are two firms in two different industries. The marginal cost of the first firm...

60.1K

Verified Solution

Question

Economics

Assume there are two firms in two different industries. Themarginal cost of the first firm is $30, and its price is $38. Themarginal cost of the second firm is $22, and its price is $26.Calculate first the Lerner Index for each firm. Then use it tocalculate the markup factor for each firm. Which firm has a highermarkup factor over marginal cost?

Please explain your answer

Answer & Explanation Solved by verified expert
4.1 Ratings (773 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

25. Top-­‐down processing is to ______, as bottom-­‐up processing is to ______. a. inductive reasoning; deductive reasoning b....

Psychology
Q

Suppose a sample of 49 paired differences that have been randomly selected from a normally distributed...

Basic Math
Q

[The following information applies to the questions displayed below.] Concord Corp. completed the following transactions in...

Accounting
Q

72 Go Review Conceptual Example 8 as background for this problem A loudspeaker is generating...

Biology
Q

6 18 The magnetic field associated with a light wave is given at the origin...

Physics
Q

Consider a point charge q The equi potential surface whose potentials differ by a constant...

Physics
Q

Sinusoidal waves travel on five identical strings Use the mathematical forms of the waves given...

Physics
Q

The block is released after stretching the spring by a distance A from its natural...

Physics
Q

A thin non conducting horizontal disc of mass m having total charge q distributed uniformly...

Physics
Q

BASS 170 D 2 DBC 550 LACB 50 LBCD 65 2CBA 70 LBAD X X...

Geometry
Q

Scores on the SAT are normally distributed The mean SAT score in 2022 was a...

Algebra
Q

Spring Company is considering investing in a new piece of equipment. It will cost $400,000...

Accounting