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 i
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"] 