The Lerner Index is derived from the profit-maximizing condition of a firm
Indicate whether the statement is true or false
True . Start out with MR = MC, realize that MR = P(1 + 1/e), and solve.
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If the cross elasticity of demand between good A and good B is negative, then a decrease in the price of good A results in
A) an increase in the demand for good B. B) a decrease in the demand for good B. C) a movement downward along the demand curve for good B. D) an increase in the supply of good B. E) a decrease in the supply of good B.
Since 1995, federal regulations have
a. tightened mortgage lending standards and therefore made it difficult to obtain a loan to purchase a house. b. increased the down payment housing buyers are required to make in order to obtain a mortgage loan. c. loosened lending standards and made it possible for many buyers to purchase a house with little or no down payment. d. required investment banks to maintain more capital against their holdings of mortgage loans.
Explicit costs are
A) the opportunity costs of all resources used by the firm. B) the costs associated with the resources that the firm owns. C) actual expenditures that a firm must make. D) all costs associated with the short run.
The total demand for a public good is found by
A) horizontally summing all individual demands. B) vertically summing all individual demands. C) finding the demand from the median voter. D) dividing the marginal cost of the good by the number of voters.