​The Own Price Elasticity of Anne's Apple Pies Is 5

question 37

Multiple Choice

​The own price elasticity of Anne's apple pies is 5.If the aggregate market for apple pies has an own price elasticity of 1.25,Anne's apple pies has an approximate market share of

• A)​6.25%
• B)25%
• C)10%
• D)​20%

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Definitions:

Profit

The financial gain obtained when the revenue from selling goods or services exceeds the costs involved in their production or provision.

Production Function

A production function is an equation that describes the maximum output of a good or service an economy or firm can produce given the input resources it has available.

Labor

The human effort, whether physical or mental, used in the production of goods and services.

Output

The total amount of goods or services produced by a firm, industry, or economy.