The Lerner index measures

A) a firm's potential monopoly power.
B) the amount of monopoly power a firm chooses to exercises when maximizing profits.
C) a firm's potential profitability.
D) an industry's potential market power.

B

Economics

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If a linear supply curve has a zero intercept, the elasticity of supply is always unitary

What will be an ideal response?

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Price discrimination is best described as a monopolist:

a. selling a product at the fixed market determined price. b. charging buyers an excessive price for the product. c. charging different customers different prices when the costs are equal. d. selling a product for different prices during two different periods of time. e. charging same prices to different customers when the costs are different.

Economics