Author Question: The more inelastic the demand curve, a monopoly A) will have a smaller Lerner Index. B) will ... (Read 60 times)

Redwolflake15 · **on:** Jul 1, 2018

The more inelastic the demand curve, a monopoly

A) will have a smaller Lerner Index.
B) will face a lower marginal cost.
C) will earn less profit.
D) will lose fewer sales as it raises its price.

Question 2

Insurance companies do NOT offer fair insurance because

A) they are run by greedy capitalists.
B) they could not stay in business.
C) they cannot diversify their risks.
D) they are risk-avoiding.