How to imply is the minimum elasticity of demand

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Reference no: EM13203639

We defined the Lerner Index LI = 1/-e
where e is the elasticity of demand. We also showed that LI
can be alternatively expressed as (P-MC)/P . Use these relationships to show that LI can never exceed 1.
What does this imply is the minimum elasticity of demand we should ever observe for a monopolist?

Reference no: EM13203639

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How to imply is the minimum elasticity of demand : We defined the Lerner Index LI = 1/-e where e is the elasticity of demand. We also showed that LI can be alternatively expressed as (P-MC)/P . Use these relationships to show that LI can never exceed 1. What does this imply is the minimum elasticity ..

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