If a Monopoly Can Produce a Good at Zero Marginal

question 121

Multiple Choice

If a monopoly can produce a good at zero marginal cost,then its Lerner Index is

• A) zero.
• B) one.
• C) infinity.
• D) undetermined.

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Definitions:

Determinism

The philosophical doctrine that all events, including human action, are ultimately determined by causes external to the will.

Physical Cause

An ailment or condition that can be attributed to a tangible or biological factor rather than psychological influences.

Hereditarianism

The theory that genetic inheritance is a primary determinant of human traits including intelligence, personality, and behavior.

Free Will

Free will refers to the belief that humans have the power to make choices that aren't predicated solely by biology or external forces.