« previous next »

Author Question: If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals A) ... (Read 94 times)

cmoore54

  • Hero Member
  • *****
  • Posts: 568
on: Jul 1, 2018
If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals
 
  A) zero.
  B) one.
  C) infinity.
  D) one-half.

Question 2

In a competitive market where the elasticity of the market demand curve is -2, the elasticity of the supply curve is 1, and an individual firm faces a residual demand curve with an elasticity of -98. What happens to the individual firm's residual demand curve when the number of firms serving this market declines?
 
  A) It becomes less elastic.
  B) It becomes more elastic.
  C) It does not change.
  D) It cannot be determined.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Eye ball perfectly labelled (map) Eye ball perfectly labelled (map)
Heat Index Heat Index
A mini clamp-on digital multimeter can be used to measure alternator output and unwanted AC current ... A mini clamp-on digital multimeter can be used to measure alternator output and unwanted AC current ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Pacific Decadal Oscillation: PDO index Pacific Decadal Oscillation: PDO index
The surface temperature of the star is 6000 K. At what wavelength is its light output a maximum The surface temperature of the star is 6000 K. At what wavelength is its light output a maximum
Video: Muscular Dystrophy

For a complete list of videos, visit our video library