User Account

All Pages

Lerner index

Assignment Help Business Economics
Reference no: EM13831860

Lerner Index

A firm sells 10 units at a price of 20. The marginal cost of production for this firm is

MC(q)=5+q.

a) What is this firm’s Lerner Index?

b) Provide an interpretation of this value.

Reference no: EM13831860

Questions Cloud

About the current versus future expected exchange rate : Suppose the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Explain.
Which type of price discrimination-perfect-group-nonlinear : 4.5 Grocery store chain often set consumer-specific price by issuing frequent –buyer cards to willing customers and collecting information about their purchases. Grocery chains can use that data to offer customized discount coupons to individuals. Wh..
Quantity effect of a specific tax : A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produced will be from such a tax. The proposed specific tax is τ = 10 and the following are the ..
Two-part tariff : A firm faces two consumers with the following demand functions: p1(q1) = 400 − q1. p2(q2) = 300 − q2. The firm’s constant marginal cost of production is, c = 50. The firm may charge an access fee and per unit price (that the consumers can choose not ..
Lerner index : A firm sells 10 units at a price of 20. The marginal cost of production for this firm is MC(q)=5+q. What is this firm’s Lerner Index?
Life cycle cost analysis-user benefit resulting from project : Life Cycle Cost Analysis (LCCA) does not include "User benefits resulting from project" or "Externalities resulting from project". Unlike analysis based on net annual worth, net present worth analysis does NOT require equal analysis periods for diffe..
Regulating a monopoly : Suppose that a monopolist sells a product to consumers with an aggregate inverse demand that is downward sloping in quantity, P (Q) = 1000 − 4Q. The total cost of producing Q units is C(Q) = Q2. What is the unregulated price-quantity pair? At this eq..
Explain the change in female labor force participation rates : Which of the following cannot explain the change in female labor force participation rates over the past 75 years? Unemployment compensation programs provide a lower income than workers received while they were employed because full replacement of lo..
Full income and labor turnover : Labor turnover during periods of economic expansion is largely the result of: Full income. If leisure is a normal good, an increase in nonlabor income will cause the quantity of labor supplied to:

Reviews

Write a Review

Business Economics Questions & Answers

  Optimistic conclusion-with right legal-procedural safeguards

In "In Praise of Big Brother" (pp. 203-215), James Stacey Taylor argues for the optimistic conclusion that, with the right legal and procedural safeguards, large-scale governance surveillance would have many positive consequences. What are Taylor's b..

  Comput the following with an explanation how you arrived

Comput the following with an explanation how you arrived at each result. The Amount Consumers will spend on new consumption.

  Foreign affairs-domestic policy and national security

Select three presidents and research their Chief of Staff and White House advisers during their tenure as President. Create a chart comparing and contrasting how these advisers influenced each president in economics, foreign affairs, domestic policy ..

  What changes in sales would you anticipate if you manager

What changes in sales would you anticipate if you were manager of a Dodge/Plymouth franchise. What is each firm's marginal revenue.

  Has charterholder violated any of the cfa institute standard

A CFA charterholder is the Fund Manager for a non-profit organization. During a presentation regarding the restructuring of their investment portfolio's asset allocation, the Head of the Finance Committee questions the manager. As part of his resp..

  How does corporate sponsorship affect the demand for product

how does corporate sponsorship affect the demand for the sponsor's product? why have so many companies purchased naming rights rather than purchase time to broadcast commercials during football bowl games ?

  Profit-maximizing equilibrium

Assume a perfectly competitive firm is producing a level of output at which MR

  Consider the market for taxi service

Consider the market for taxi service in Washington, DC. Use demand-supply analysis to explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following (considers each case separately; and assumes that only one..

  Q1 adhesive is made of polymer dissolved in a solvent

q1. adhesive is made of polymer dissolved in a solvent because the polymer content enhance the adhesive is more

  Illustrate what effect did this decline

An average yearly rate of 10 to 11 percent in the late 1980s. Illustrate what effect did this decline have on.

  Compute the present value of a perpetuity bond

Compute the present value of a perpetuity bond that pays a monthly cash flow of $1000 at an annual interest rate of 12 percent.

  Identify a plc company that uses strategic management

Identify a PLC company that uses strategic management - this company may be prosperous, booming, in decline, or in economic difficulties.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd