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Consider the following data for a firm: Firm’s price elasticity of demand = –0.80; Firm’s marginal...

Consider the following data for a firm: Firm’s price elasticity of demand = –0.80; Firm’s marginal cost: $5; Market’s price elasticity of demand = –0.60; and Firm’s selling price of output: $25. Based on this information, the Rothschild index is _______, the Lerner index is _______, and these suggest the firm is _______.

Group of answer choices

a. 0.75, 0.80, an oligopoly

b. 1.33, 1.00, a monopoly

c. 0.75, 0.20, monopolistically competitive

d. 0.25, 0.002, perfectly competitive

e. 0.025, 0.002, perfectly competitive

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