Suppose a market with a Cournot structure has five firms and a market price elasticity of demand equal to -2. What is a Cournot firm's Lerner Index?

Using a graph, illustrate the effect that an increase in production costs will have on the equilibrium price and quantity of a good

What will be an ideal response?

Which of the following tax systems could not be structured to satisfy conditions of vertical equity?

a. a proportional tax b. a regressive tax c. a progressive tax d. a lump-sum tax