In a competitive market where the elasticity of the market demand curve is -2, the elasticity of the supply curve is 1, and an individual firm faces a residual demand curve with an elasticity of -98. What is the number of firms in this market?
A) 10
B) 20
C) 33
D) Cannot be determined.
C
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There is excess production of tomatoes in the market. This implies that
A. the current price is above the equilibrium level. B. supply of tomatoes is more than the demand. C. quantity demanded is more than quantity supplied. D. the price will be rising, as a result.
When a business finds its obligations are ended,
a. all costs are variable costs b. this is the short run c. the market price of the output rises d. the marginal cost curve shifts up e. it may have to continue operations to minimize losses
If I use 1,000 gallons of water a month at a price of $.01 a gallon, is my consumer surplus likely to be large or small? Explain
Of the curves displayed in graph shown, what does curve C most likely represent?
A. Marginal cost B. Average variable cost C. Average total cost D. Marginal revenue