A Lerner Index of 0 Suggests

question 31

Multiple Choice

A Lerner index of 0 suggests:

• A) monopoly.
• B) monopolistic competition.
• C) oligopoly.
• D) perfect competition.

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Definitions:

Cash Dividends

Direct payments of profit made to shareholders, proportionate to the number of shares they own.

Treasury Stock

Shares that were first put into circulation by a company and then taken back, diminishing the quantity of shares actively traded on the market.

Small Stock Dividend

A dividend paid in the form of additional shares of the issuing corporation, typically representing less than a 25% increase of the outstanding shares.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.