What is the elasticity of firm i
Course:- Microeconomics
Reference No.:- EM13850574

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

Residual Demand

1. If market demand is Q = 100 - P^2 and the supply by any given firm is q = 2P^2, then what is the residual demand of firm i if there are a total of 20 firms in this market?

2.What is the elasticity of firm i?

3.What if there was a change in the market and the total number of firms dropped to 10?

4. Is the demand elasticity of an individual firm more or less elastic than market demand elasticity,ε? What if the number of firms, n, is large as compared to small? Explain you answer



Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Assume two countries, West and East, want to decide whether to abate (control) their pollution or not. For simplicity assume each country have only two strategies, abate
Given the following annual information about a hypothetical country, answer questions a through d. What is the value of GDP? What is the value of net domestic produ
Determine which aspects of governmental reporting provide the rationale for the emphasis on expenditures rather than full accrual expenses, as used in Generally Accepted Acc
For what values of λ and y will signaling occur (a separating equilibrium)? For what values of λ and y will signaling not occur (a pooling equilibrium)? Briefly explain.
Explain what the new equilibrium point means in terms of GDP and the price level. Based on your understanding of the current health of the economy, was this program success
fatality rate on the regulation dummy variable and a trend term gives the results in Figure 21.11.6. Explain why the coefficient estimate for R changes. Be sure to discuss t
The market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and a
In the United States, what has been the trend in health care spending as a percentage of GDP? Compare the increases in health care spending per person in the United States w