1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ra1l [238]
2 years ago
5

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

Business
1 answer:
zhuklara [117]2 years ago
7 0

Answer:

The correct answer is:

0.50 (B)

Explanation:

The Lerner index is used by monopolists to measure market/monopolist power, and it is defined as the percent markup of price over marginal cost.

It is given by the formula:

L = \frac{P - MC}{P}\\where:\\L = Lerner\ index\\P = price = \$40\\MC = marginal\ cost = \$20\\\\L = \frac{40\ -\ 20}{40} \\L = \frac{20}{40}\\ L = 0.5

Note: in a perfectly competitive market, L = 0, which makes Price = Marginal cost in the equation above. But in a competitive market, it is always the case that L ≥ 0

You might be interested in
Aspen Ore purchased a vein of coal ore for $5,300,000. It is estimated that 32,000,000 tons of ore are available to be extracted
emmasim [6.3K]

Answer:

$462,094

Explanation:

Depletion expense is a charge against profits for the use of natural resources. It is calculated by multiply the number of consumed units of the natural resources by the cost per unit.

Cost per unit = Total cost / total number of units expected to be extracted = $5,300,000 / 32,000,000 = 0.165625

Depletion expense = Cost per unit x  extracted units =  0.165625 x 2,790,000 = $462,094

5 0
3 years ago
Opportunities for college graduates in international business continue to decrease as it gets more expensive to travel abroad.
n200080 [17]

The correct answer is; False.

Further Explanation:

This is a false statement. College graduates actually have more opportunities to work in international businesses. Travel costs are decreasing and people are finding cheaper places to live abroad. Many recent graduates stay in hostels, shared rooms, and may even get a living allowance from the company they are working for. For travel, people are using points and reward programs to get discounted tickets. Some countries will even pay for the work visa if the employee signs a contract to work exclusively for the company for a certain time period.

There are numerous international jobs for graduates that are wanting to live abroad. Here is a list of some of the jobs available for recent graduates;

  • English teachers
  • Banking
  • Managerial positions
  • Lawyers
  • Nurses
  • Doctors

There are even jobs for people with no college degree to work internationally. Here is a list of a few jobs for those workers;

  • Au pair
  • Bartender
  • English teacher (some places do not require a teaching degree)
  • Remote work online
  • Travel blogging
  • Yacht sailing

Learn more about working abroad at brainly.com/question/14774633

#LearnwithBrainly

8 0
3 years ago
Suppose that a tax is placed on books. if the sellers pay the majority of the tax, then we know that the
Inessa05 [86]
If the sellers pay the majority of the tax, then the supply is more inelastic than demand. 

If something is inelastic it is not sensitive to changes in the price or income of someone. The sellers will always have more of the tax burden when supply is more inelastic than demand and vis versa when demand is more inelastic than supply. 
4 0
3 years ago
Each general partner in a limited partnership _______. (choose two correct answers)
Natalija [7]

Each general partner in a limited partnership has personal liability

<h3>What is personal liability?</h3>

Personal liability insurance, often known as "comprehensive personal liability (CPL) insurance," is a part of a homeowners insurance or umbrella insurance policy that guards you and members of your household against claims stemming from injuries and damage to other people's property. It protects you from having to pay hefty sums out of pocket if you are found to be accountable for something bad that occurs to a third party.

Your personal liability insurance protects you from lawsuits stemming from injury to others and property damage.

Personal liability insurance is available independently, even though it is frequently included in a homes policy.

To learn more about personal liability from the given link:

brainly.com/question/16059229

#SPJ4

7 0
1 year ago
A 30-year $185,000 amortized mortgage loan has a fixed interest rate of 4.375% and fixed monthly payments. The monthly payment i
dangina [55]

Answer:

$177,114.99

Explanation:

The ending balance of the loan at the end of the 30th month after the monthly payment is the beginning balance at the beginning of the month plus the interest for the month minus the monthly payment.

Note that the interest expense for the month increases the loan balance while the monthly payment reduces the balance.

interest expense for 30th month=beginning balance*fixed interest rate/2

interest expense for 30th month=$177,391.93*4.375%/12

interest expense for 30th month=$646.74

monthly payment =$923.68

The ending balance of the loan=$177,391.93+$646.74-$923.68

The ending balance of the loan=$177,114.99

7 0
3 years ago
Other questions:
  • Sarasota Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first y
    10·1 answer
  • Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alte
    5·1 answer
  • Rinker Audio Products wants to adopt the total quality management (TQM) philosophy as developed by, among others, W. Edwards Dem
    12·1 answer
  • The _____, or potential exposures, possible in a medium is arrived at by multiplying the medium's total audience size by the num
    12·1 answer
  • Which factors affect the pricing function
    8·1 answer
  • Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project beta) that will require an initial
    5·1 answer
  • McFann Co. has two divisions, L and H. Division L is the company's low-risk division and would have a WACC of 8% if it were oper
    9·1 answer
  • An author's audience refers specifically to
    15·1 answer
  • The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the fi
    13·1 answer
  • The following comparative balance sheets and income statement are available for AddieMae Inc.. Prepare a statement of cash flows
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!