When demand is more elastic in an oligopolistic industry the markup over marginal cost is smaller....
When demand is more elastic in an oligopolistic industry the markup over marginal cost is smaller. True / False
Homework Answers
True.
In any type of industry if demand is more elastic mark up will be smaller. Because if mark up is set higher demand will fall which will decrease the total revenue for the firms.
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When demand is more elastic in an oligopolistic industry the
markup over marginal cost is smaller....
Question 8 1 pts When demand is more elastic in an oligopolistic industry the markup over...
Question 8 1 pts When demand is more elastic in an oligopolistic industry the markup over marginal cost is smaller. True False
The following formula shows that the firm’s “markup” over marginal cost depends inversely on the elasticity...
The following formula shows that the firm’s “markup” over
marginal cost depends inversely on the elasticity of market demand,
which is called "Lerner Index". Prove this formula step by step
from a monopoly's profit-maximization problem.
The following formula shows that the firm's “markup” over marginal cost depends inversely on the elasticity of market demand, which is called "Lerner Index". Prove this formula step by step from a monopoly's profit-maximization problem. Pm – MC 1 1 Pm CDP
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will increase when the price decreases? True or False? 3) The price elasticity of supply will be a smaller number when it is relatively easy for sellers to increase their supply. ( True or False)? 4) Demand is more elastic when the absolute value of the price elasticity of demand is larger. ( True or False)? 5) If the quantity demanded of one good increases...
Demand is more elastic: a. in the short run than in the long run. b. for...
Demand is more elastic: a. in the short run than in the long run. b. for goods with many substitutes than for goods with only a few. c. for goods with no substitutes. d. for necessities than for luxuries. e. for broadly defined goods than for narrowly defined ones. All other things constant, if a _____ proportion of a consumer’s budget is spent on a good, the demand for the good will be more _____ and a consumer will purchase...
QUESTION 5 If demand is more elastic and supply is less elastic, then the burden of...
QUESTION 5 If demand is more elastic and supply is less elastic, then the burden of a tax would fall heavily on consumers. o True False
The demand for Rice Krispies is more elastic than the demand for cereal in general. a....
The demand for Rice Krispies is more elastic than the demand for cereal in general. a. True b. False
4. The elasticity of demand in the local hardware industry is -1.5, while in the video...
4. The elasticity of demand in the local hardware industry is -1.5, while in the video market it is -4. Which industry has a higher markup over marginal cost (as a percentage of price)? In answering, calculate the markup for each.
The demand for bread is likely to be more elastic than the demand for solid-gold bread...
The demand for bread is likely to be more elastic than the demand for solid-gold bread plates. a. True b. False
The demand for Rice Krispies is more elastic than the demand for cereal in general. Group...
The demand for Rice Krispies is more elastic than the demand for cereal in general. Group of answer choices True False
All else equal, consumer demand for a good will be more elastic in the short run...
All else equal, consumer demand for a good will be more elastic in the short run than in the long run. True False D Question 4 10 pts Food and drink purchased inside an airport or concert have higher prices than food and drink elsewhere because when consumers are in these locations demand is more (elastic, inelastic). When this is the case. sellers can earn more revenue by charging (higher, lower) prices. The reason that prices in these locations aren't...
Question 8 1 pts When demand is more elastic in an oligopolistic industry the markup over marginal cost is smaller. True False
The following formula shows that the firm’s “markup” over
marginal cost depends inversely on the elasticity of market demand,
which is called "Lerner Index". Prove this formula step by step
from a monopoly's profit-maximization problem.
The following formula shows that the firm's “markup” over marginal cost depends inversely on the elasticity of market demand, which is called "Lerner Index". Prove this formula step by step from a monopoly's profit-maximization problem. Pm – MC 1 1 Pm CDP
QUESTION 5 If demand is more elastic and supply is less elastic, then the burden of a tax would fall heavily on consumers. o True False
4. The elasticity of demand in the local hardware industry is -1.5, while in the video market it is -4. Which industry has a higher markup over marginal cost (as a percentage of price)? In answering, calculate the markup for each.
All else equal, consumer demand for a good will be more elastic in the short run than in the long run. True False D Question 4 10 pts Food and drink purchased inside an airport or concert have higher prices than food and drink elsewhere because when consumers are in these locations demand is more (elastic, inelastic). When this is the case. sellers can earn more revenue by charging (higher, lower) prices. The reason that prices in these locations aren't...
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