The industry elasticity of demand for good X is -1.5, while the elasticity of demand for an individual manufacturer of good X product is -9.Based on this information, the Rothschild index of market power is:
A) 1/6, indicating there is little monopoly power in this industry.
B) 6, indicating there is significant monopoly power in this industry.
C) 6, indicating there is little monopoly power in this industry.
D) none of the statements associated with this question are correct.
Correct Answer:
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