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LERNER INDEX: The difference between price (p) and marginal cost (mc) as a fraction of price, that is [p-mc]/p. The Lerner index is usually taken as an indicator of market power because the larger the index, the larger the difference between price and marginal cost, that is, the larger the distance between the price and the competitive price. The Lerner index depends on the elasticity of demand. The Lerner index is also called the price-cost margin.
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Lesson 18: Banking | Unit 3: Reserve Banking
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Page: 15 of 24
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The story continues when Elizabeth the Innkeeper needs to expand her business and ask Fred for a loan. The story: - Elizabeth's business is booming, but she is temporarily short of money, short of gold.
- She asks Fred for a loan of gold that belongs to Bill the Knight that Fred keeps on his safe.
- Elizabeth is willing to pay Fred a sizable fee for taking the risk of making this loan.
- Fred makes the loan.
- Elizabeth expands her inn, she repays the loan on schedule with interest with profit from business.
- Bill collects his gold upon returning.
- Other local merchants soon seek interest lending services from Fred.
Fred has discovered the lending function of modern banks.
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AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE A scientific society whose main mission is to advance science and innovation throughout the world. The American Association for the Advancement of Science (AAAS for short) publishes one of the most respected scientific magazines called Science. The association and magazine have nearly 140,000 individual and institutional subscribers, plus 272 affiliated organizations in more than 130 countries, serving a total of 10 million individuals. The American Association for the Advancement of Science was founded in 1848 to represent all disciplines of science and to support scientific exchange and discussion of science and society issues.
Complete Entry | Visit the WEB*pedia |
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time watching infomercials seeking to buy either an electric coffee pot with automatic shutoff or a brown leather attache case. Be on the lookout for crowded shopping malls.
Your Complete Scope
This isn't me! What am I?
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Three-forths of the gold mined each year is used to manufacture jewelry.
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"The time to repair the roof is when the sun is shining." -- John F. Kennedy, 35th U. S. president
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NLREG
Nonlinear Statistical Regression
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