What is the value of the Lerner index for a company that has demand function Q = 220 - 4P and cost function C = 500 + Q^2? A. 1/19

Macroeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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What is the value of the Lerner index for a company that has demand function Q = 220 - 4P and cost function C = 500 + Q^2?

A. 1/19
B. 1/9
C. 1/4
D. 1/2

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Learner's index is used to measure monopoly power. It shows how greater is price from its marginal cost.

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