« previous next »

Author Question: For a monopoly market, if the Lerner Index is 2, then A) the monopoly is maximizing its profit. ... (Read 87 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?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

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?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ... Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ...
NCC MERP Index for categorizing medication errors algorithm. NCC MERP Index for categorizing medication errors algorithm.
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
Cranial polarization. Lightly place both thumbs on the anterior fontanel, with both index fingers ... Cranial polarization. Lightly place both thumbs on the anterior fontanel, with both index fingers ...
Reconstruction Drawing of Trajan's Market Reconstruction Drawing of Trajan's Market
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
Video: Mechanism of enzyme action

For a complete list of videos, visit our video library