The Lerner Index is preferred to the Herfindahl-Hirschman Index as a measure of market power due to the former's simplicity and straightforward interpretation
Indicate whether the statement is true or false
FALSE
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$500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of 4X with 25% probability and $0 with 75% probability. Dean's expected payoff from investing $250 in both Dog Gone Salon and Pretty Kitty Grooming is:
A. $62.50. B. $500. C. $750. D. $250.
Which of the following is true of per capita GDP and GDP per hour worked?
a. Per capita GDP is smaller than GDP per hour worked b. Per capita GDP is larger than GDP per hour worked. c. Per capita GDP is a common measure of estimating U.S. productivity in business sectors. d. GDP per hour worked shows the average quantity of available goods and services per person.
An argument for making regulated monopolies adopt competitive prices is that this would ________.
A. make the marginal cost equal to society's valuation of the marginal benefit B. increase productive efficiency by making price equal average total cost C. benefit higher income groups by making monopoly products more affordable D. increase managerial incentives to reduce employment and production
If country A exports good X to country B and country B exports good Y to country A, it is most likely that
A) A has an absolute advantage in the production of good X. B) B has a comparative advantage in the production of good Y. C) the opportunity cost of domestic production of good Y for country A is lowered with trade. D) B is producing less of good Y than in the no-trade case.