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Suppose a Monopolist Has TC = 40 + 10Q

Question 108

Multiple Choice

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

Correct Answer:

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