When the Independent Variables Are Expressed in Log Form and Not

question 30

True/False

When the independent variables are expressed in log form and not squared in order to use linear regression to estimate the coefficients, then we are assuming that the elasticity of demand for that variable is constant.

---

Definitions:

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition.

Oligopolistic Firms

Companies operating in a market structure characterized by a small number of large firms that have significant control over market prices and competition levels.

Interdependence

The mutual reliance between two or more groups, entities, or processes.