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
You might also like to view...
The tendency for people to behave in a riskier way or to renege on contracts when they do not face the full consequences of their actions is called:
A. moral hazard. B. adverse selection. C. counter information. D. collective bargaining.
We're more likely to make mistakes with situations we face:
A. often, because we pay less attention. B. often, because they involve low payoffs. C. infrequently. D. with little warning.
Adam Smith stressed specialization and division of labor as causes of economic growth.
Answer the following statement true (T) or false (F)
A firm's short-run supply curve shows the relationship between price and quantity supplied.
Answer the following statement true (T) or false (F)