a) Identify the most important source(s) of market power in thefollowing markets and briefly explain your answers:
i. Small town bars with liquor licenses
ii. Apple iPad
iii. Electronic commerce (Amazon)
iv. Brand-name prescription drugs
v. Netflix
b) Calculate the Lerner Index for the following profitmaximizing firms:
i. Netflix: price = 10, marginal cost = 4
ii. Shell gasoline: elasticity = 0.6
c) Provide an example cross price elasticity for the followingproducts and briefly justify your answer:
i. The price of Apple iPhone X and the quantity of SamsungGalaxy S10
ii. The price of BP gasoline and the quantity of Ford ExpeditionSUV’s
iii. The price of Starbuck’s latte’s and the quantity of Nikeshoes
