firm with market power sells iti product in twe markets. The price in Market lis three times the price in Market 2 Assuming the firm faces the same constant mirginal cost in each market and the price elasticity of demand m Market I is -1.2, the demand in Market 2 has an elasticity of -2. O has an elasticity of -3.6. O has an elasticity of-0.4. s lems elastic than the demand in Market 1

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
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A firm with market power sells its product in rre markets. The price in Market lis three times the price in
Market 2 Assuming the firm faces the same constant mbrginal cost in each market and the price elasticity of
demand in Market 1 is -1.2, the demand in Market 2
has an elasticity of -2.
has an elasticity of -3.6.
has an elasticity of-0.4.
is less elastic than the demand in Market 1
Transcribed Image Text:A firm with market power sells its product in rre markets. The price in Market lis three times the price in Market 2 Assuming the firm faces the same constant mbrginal cost in each market and the price elasticity of demand in Market 1 is -1.2, the demand in Market 2 has an elasticity of -2. has an elasticity of -3.6. has an elasticity of-0.4. is less elastic than the demand in Market 1
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