There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is
A) -42.
B) -15.
C) -1.5.
D) -27.
A
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The above figure shows the U.S. market for 1 carat diamonds. With free trade, U.S. production of diamonds is equal to ________ diamonds. When the quota illustrated in the figure is in place, U.S. production is equal to ________ diamonds
A) 300,000; 100,000 B) 100,000; 500,000 C) 300,000; 500,000 D) 100,000; 300,000 E) 900,000; 700,000
Jack is a prospective buyer of a commodity that Jill is offering to sell. Social surplus in this scenario can be maximized:
A) when only Jack is optimizing. B) when only Jill is optimizing. C) when both Jack and Jill are optimizing. D) when neither Jack nor Jill is optimizing.
How do product development and marketing affect a firm in monopolistic competition?
What will be an ideal response?
Liquidity is
A. The opportunity cost of purchasing a bond. B. Low for cash. C. Not important for bondholders. D. The ability of an asset to be converted to cash.