A firm has a marginal cost of $20 and charges a price of $40. the lerner index for this firm is 0.50.
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What is Lerner index?</h3>
Lerner index, in economics is a measure of the market power of a firm. Formalized by the Russian-British economist Abba P. Lerner in 1934.
The Lerner index is expressed in the following formula:
Lerner index = P - MC/P
where P represents the price of the good set by the firm and MC represents the firm's marginal cost.
The index measures the percentage markup that a firm is able to charge over its marginal cost.
The index ranges from a low value of 0 to a high of 1.
The higher the value of the Lerner index, the more the firm is able to charge over its marginal cost, hence the greater its monopoly power.
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B. <span>adverse selection of wage cuts
The </span><span>adverse selection of wage cuts is one of the economic theory to explain why wage are less likely to decrease than increase.
Some of this theories revolve around laws and institution: for example, if the firm is paying only a minimum wage to its employees, it is illegal to reduce that wage.
There are other theories that try to identify the factors behind this pattern: one, the adverse selection of wage cuts argument, describe a situation in which if the employer cut all wages in order to meet the poor requests of the market, the employees that are most likely to stay are the less valuable one, as the most valuable will find a new job elsewhere.</span>
Answer:
Journalism and Broadcasting
Explanation:
Journalism and broadcasting involve reporting news and other messages to the public electronically or by radio instead of using print media. Journalism and broadcasting is popularly known as the broadcast journalism sector. Careers in this sector revolve around working in the television, radio, and online broadcasts.
Broadcast journalism disperses information to a large audience quickly than other forms of journalism such as print media. This media has no language barrier as information as it is possible to broadcast in any language.
The amount of utilities cost for July that appears on the flexible budget is12,500*$0.33 = $4.
<h3>Flexible budget </h3>
A flexible budget is one based on different volumes of sales. A flexible budget flexes the static budget for each anticipated level of production. This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales.
<h3>How do you calculate flexible budget?</h3>
To do this, multiply the total production output by the variable cost of each unit produced. For example, if the total production output is 1,000 products and the variable cost for each unit is $25, the total variable cost is $25,000. You can also calculate average variable costs that are not related to production.
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