Suppose the Market Demand Elasticity Is Constant at -2,and There

question 40

Multiple Choice

Suppose the market demand elasticity is constant at -2,and there are three identical firms in the oligopolistic market.A Cournot firm's MPL = 1.2L⁻⁰.⁵,then the labor demand for a Cournot firm is

• A) PL⁻⁰.⁵.
• B) 0.6PL⁻⁰.⁵.
• C) 0.2PL⁻².
• D) PL⁻².

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