Suppose a Firm's Inverse Demand Curve Is P = 100

question 31

Multiple Choice

Suppose a firm's inverse demand curve is P = 100 - Q, and its marginal cost is constant at $20. What is the value of the Lerner index at the profit-maximizing quantity?

• A) 0.67
• B) 0.80
• C) 0.22
• D) 0.33

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Definitions:

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A notorious and unethical study conducted between 1932 and 1972 by the U.S. Public Health Service on the effects of untreated syphilis in African American men.

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