A Firm Has a Marginal Cost of $20 and Charges

question 69

Multiple Choice

A firm has a marginal cost of $20 and charges a price of $40.The Lerner index for this firm is:

• A) 0.20.
• B) 0.50.
• C) 0.33.
• D) 0.75.

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Definitions:

Social Security

A government system that provides monetary assistance to people with an inadequate or no income.

Savings Method

A research method used in psychology to measure the amount of learning retained after some period, often through assessing the speed or amount of relearning compared to the initial learning phase.

Recall Method

A cognitive process that enables retrieving information from memory.

Free Recall

A memory task in which a person must retrieve stored information without the aid of cues.