If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals
A) zero.
B) one.
C) infinity.
D) one-half.
A
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If Bonnie can produce either 20 hats or 10 scarves in a month, and Phil can produce either 5 hats or 10 scarves in a month, then
A) Bonnie is more efficient at producing hats, compared to Phil. B) Bonnie is equally efficient at producing scarves, compared to Phil. C) both A and B above are true. D) none of the above are true.
Suppose price decreases from $27.00 to $13.00. Using the mid-point formula, the percentage change in price is:
A. 0.35 = 35 percent. B. 0.7 = 70 percent. C. 0.7 = 70 percent. D. 14 percent.
A decrease in demand and an increase in supply are indicated by a. Upward shifts in both curves
b. Downward shifts in both curves. c. Rightward shifts in both curves. d. Leftward shifts in both curves.
The marginal propensity to consume is always
a. greater than 1 b. between 0 and 1 c. less than 0 d. between 0 and -1 e. between 0 and 0.6