Homework Help: economic

Posted by sherry on Friday, October 13, 2006 at 12:39am.

Suppose that your firm was accused of illegally conspiring with other sellers to act as a monopolist. In searching for an expert witness, you discover one economist who has calculate the cross elasticity of demand for your industry's product to be+2.05, while another economist has calculated the cross elasticity of demand to be +0.43. Which econimist whould your hire testify on behalf of your firm? Explain your answer

Take a shot.

Note that a +2.05 cross price elasticity means that if the price of some particular other product goes up by 1%, the demand for the firm's product (at the prevailing price) will go up by 2.05%. Compare this to an alternative measure of +0.43 Which econmist thinks the firm makes a product that has "good" substitutes?

No one has answered this question yet.

Answer this Question

Related Questions

economics(micro) - hi ppl ! i have an assinment im stuck on, this particular ...
economics - A monopoly firm is different from a competitive firm in that A. ...
econ - 1. Consider a pure monopolist with short-run total cost function given by...
Economics - . Suppose the demand curve for a monopolist is QD =500 - P, and the ...
Economics/Algebra - A monopolist has a constant marginal and average cost of $10...
Economics - Suppose the demand curve for a monopolist is Qd = 500 – P, and ...
economics - Suppose a monopolist faces an inverse demand function P=100-1/2Q, ...
managerial economics - Consider the one-shot, simultaneous move game below, and ...
Economics - Goodday I would like to find out whether the following statements ...
ECONOMICS - Two price setting firms have the same price and marginal revenue ...

For Further Reading

First Name:
School Subject:
Answer: