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In the Dominant Firm Model,if the Elasticity of Market Demand

Question 69

Multiple Choice

In the dominant firm model,if the elasticity of market demand is 0.75,the dominant firm's market share is 0.25,and the elasticity of supply of the competitive fringe is 2,then the dominant firm's elasticity of demand is _____.


A) 3
B) 5
C) 7
D) 9

Correct Answer:

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