« previous next »

Author Question: For a monopoly market, if the Lerner Index is 2, then A) the monopoly is maximizing its profit. ... (Read 70 times)

laurencescou

  • Hero Member
  • *****
  • Posts: 593
on: Jul 1, 2018
For a monopoly market, if the Lerner Index is 2, then
 
  A) the monopoly is maximizing its profit.
  B) the price elasticity of demand is -2.
  C) the price elasticity of demand is -0.5.
  D) None of the above.

Question 2

The three models of oligopolies, Cournot, Stackelberg and Bertrand, all assume firms independently choose the quantity of output to produce.
 
  Indicate whether the statement is true or false


hugthug12

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

False. While the Cournot and Stackelberg models assume quantity choice as the action, in the Bertrand model, firms choose price.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Digital rectal exam (DRE). The physician’s index finger is inserted into the rectum and pressed agai Digital rectal exam (DRE). The physician’s index finger is inserted into the rectum and pressed agai
Heat Index Heat Index
Wind Chill Index Wind Chill Index
Apply L stroke on terminus. Place your index and middle fingers on the left and right terminus; ... Apply L stroke on terminus. Place your index and middle fingers on the left and right terminus; ...
The Glycemic Index of Commonly Eaten Foods The glycemic index of a variety of foods The Glycemic Index of Commonly Eaten Foods The glycemic index of a variety of foods
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Video: Carbohydrate Metabolism: Introduction to renal processes and filtrate formation and composition

For a complete list of videos, visit our video library