What is the lerner index for this industry

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Reference no: EM13316198

Market Structure: Monopoly and Monopolistic Competition in Microeconomic Analysis from book Economics for Managers

1).  Suppose the demand curve for a monopolist is Qd = 500 – P, and the marginal revenue function is MR = 500 – 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. 

a). Find the monopolist’s profit-maximizing output and price.

b). Calculate the monopolist’s profit.

c). What is the Lerner index for this industry?

2). The top four firms in Industry A have market shares of 30, 25, 10, and 5 percent, respectively. The top four firms in Industry B have market share of 15, 12, 8, and 4 percent, respectively. Calculate the four-firm concentration ratios for the two industries. Which industry is more concentrated?

Reference no: EM13316198

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