The figure above shows the demand and cost curves facing a price-setting firm. In profit-maximizing (or loss-minimizing) equilibrium, the Lerner index is ________, and the elasticity of demand is ________.
A. 0.5; -2.0
B. 0.667; -1.5
C. 0.6; -1.667
D. 1.33; -0.75
E. 1 ; -1
Answer: C
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