Trisha has a monopoly on formal gowns in the local market.She is currently charging $37.5 per gown and sells 20 in a month.The elasticity of demand...
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1.      Trisha has a monopoly on formal gowns in the local

market. She is currently charging $37.5 per gown and sells 20 in a month. The elasticity of demand is -3 at this price and output level. What must be Trisha's marginal cost of the last gown produced if she is maximizing profits?


2.      What is the value of the Lerner index under perfect competition?

A) infinity

B) two times the price

C) 1

D) 0

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