Microeconomic Theory

12th Edition

ISBN: 9781337517942

Author: NICHOLSON

Publisher: Cengage

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Question

10.7. Cost reduction and the Herfindahl and Lerner indexes. Consider an industry where

(a) What impact does the innovation have on the values of H and L?

(b) What impact does the innovation have on consumer welfare?

(c) What do the previous answers have to say about L as performance measure?

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