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Refer to the Following Figure

Question 70

Multiple Choice

Refer to the following figure:
Refer to the following figure: 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
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

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