Assume that for a particular firm's output price = $80, marginal cost = $30, average total cost = $25. Based on this information, the firm's Lerner Index is equal to:
A) 0.313.
B) 0.375.
C) 0.6.
D) 0.625.
D
You might also like to view...
Which of the following is true?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, raise prices on both the products c. After acquiring a complementary product, lower prices on both the products d. All of the above
If spending increased by $200, and the GDP increased $1,000 as a result, the MPC must be:
A. 0.80 B. 0.75 C. 4 D. 5
Jasmine has recently moved to Florida because she loves the warm climate there. Being new to the area, she will need to spend a few weeks looking for a new job. This is an example of:
a) frictional unemployment. b) cyclical unemployment. c) structural unemployment. d) underemployment.
Economic principles and models are tools for ascertaining ________ and _________ within an economic system.
Fill in the blank(s) with the appropriate word(s).