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57. A profit-maximizing monopolist faces a downward-sloping demand curve that has a constant elasticity of -3. The firm finds
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Answer #1

Lerner's index : (P-MC)/P = 1/e

(12-MC)/12= 1/3

(12-MC)/4= 1

12-MC = 4

MC = 8

Marginal cost is 8

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