What is the value of the Lerner index under perfect competition?
A) 1
B) 0
C) infinity
D) two times the price
B
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A monopoly is a seller of a product
A) with a perfectly inelastic demand. B) without a well-defined demand curve. C) with many substitutes. D) without a close substitute.
Refer to Figure 15-6. The monopolist's total cost is
A) $1,116. B) $1,240. C) $1,660. D) $1,726.40.
Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. What is the new long-run equilibrium quantity?
A. 50 B. 60 C. 100 D. 120
The demand for money will be high in an economy experiencing: a. a depression
b. hyperinflation. c. deflation. d. a recession. e. a sluggish population growth.