One measure of the power of this structure is price minus marginal cost all over price, called the Lerner Index. It has a Herfindahl-Hirschman index of 10,000, and its pricing is determined by the inverse elasticity rule. A low, nearly constant marginal cost and high fixed costs are conducive to the natural type of this system. It may produce at fair-return or socially optimal prices, which are less than the profit maximizing price. It lacks a supply curve, so profit is maximized when half of linear revenue, or marginal revenue, equals marginal cost. For 10 points, nam
One measure of the power of this structure is price minus marginal cost all over price, called the Lerner Index. It has a Herfindahl-Hirschman index of 10,000, and its pricing is determined by the inverse elasticity rule. A low, nearly constant marginal cost and high fixed costs are conducive to the natural type of this system. It may produce at fair-return or socially optimal prices, which are less than the profit maximizing price. It lacks a supply curve, so profit is maximized when half of linear revenue, or marginal revenue, equals marginal cost. For 10 points, name this market structure in which a single producer dominates.
One measure of the power of this structure is price minus marginal cost all over price, called the Lerner Index.
monopoly [accept word forms; do not accept "monopolistic competition"] 