A firm's average cost is $20, and it charges a price of $20. The Lerner index for this firm is:

A. 0.20.
B. 0.33.
C. 0.50.
D. insufficient information.

Answer: D

Economics

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An implication of the efficient markets hypothesis is that

A) only sophisticated investors will be able to earn above-normal profits from financial investments. B) above-normal profits are available only to major traders. C) above-normal profits will be eliminated in the trading process. D) unless he or she acts recklessly, the average investor should be able to make above-normal profits.

Economics

What is the percentage of income received by the upper two quintiles on line K?

Economics