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A firm has $1,900,000 in sales, a Lerner index of 0.55, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
Instruction: Round your answers to 2 decimal places.
a. What price does this firm charge its customers?
b. By what factor does this firm mark up its price over marginal cost?
Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations.
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