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:

Workers Per Beneficiary

The ratio of active employees contributing to a system (like Social Security) to the number of recipients receiving benefits.

Privately Held Federal Debt

Debt owed by the federal government that is not owned by governmental entities but by private investors, firms, individuals, and foreign governments.

Benefit Payments

Money paid to individuals by the government or insurance schemes, as in the case of unemployment benefits, social security, or disability payments.

Social Security Surplus

Occurs when the income from Social Security contributions exceeds the payouts to beneficiaries.