What is the elasticity of firm i

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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

 

 

Reference no: EM13850574

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