Author Question: If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals A) ... (Read 93 times)

cmoore54

  • Hero Member
  • *****
  • Posts: 568
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.


miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library