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A firm has $5 million in sales, a Lerner Index of 0.75, and a marginal cost of $45, and competes against 3,000 other firms in the relevant market.
1. What price does this firm charge its customers?
2. By what factor does this firm mark up its price over marginal cost?
q1. the owners of a successful restaurant want a loan for 50000 to renovate the kitchen and expand the dining room.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
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Under what conditions are cournot and bertrand equilibria the same? You may assume the market demand is p = a ? bQ. Consider when firms are identical and different. If not, please explain why.
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