A local telephone company charges $.10/min. based on a $.08/min. marginal cost of operation. What is the Lerner Index?

A local telephone company charges $.10/min. based on a $.08/min. marginal cost of operation. What is the Lerner Index?

A local telephone company charges $.10/min. based on a $.08/min. marginal cost of operation. What is the Lerner Index? 






A. 0.2.
B. 0.25.
C. 0.40.
D. 0.50.



Answer: A