The Lerner Index is A) the ratio of the difference between ...

[wenmo]

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.

[enass]

Answer to Question 1

D

Answer to Question 2

C

[wenmo]

TYSM

[bdobbins]

Thanks for the timely response, appreciate it