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Author Question: The Lerner Index is A) the ratio of the difference between price and marginal cost to price. B) ... (Read 63 times)

wenmo

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on: Jul 1, 2018
The Lerner Index is
 
  A) the ratio of the difference between price and marginal cost to price.
  B) equal to (Price - MC)/Price.
  C) a measure of market power.
  D) All of the above.

Question 2

In a competitive market where the elasticity of the market demand curve is -1.5, the number of firms is 20, and an individual firm faces a residual demand curve with an elasticity of -68. What is the elasticity of the supply curve?
 
  A) 0.5
  B) 1.2
  C) 2
  D) Cannot be determined.


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enass

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

C


wenmo

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

lcapri7

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Reply 3 on: Yesterday
Excellent

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