There Are 10 Identical Internet Service Providers (ISPs)in a City

question 34

Multiple Choice

There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5.The elasticity of supply for each firm is 3.0.The elasticity of demand faced by an individual ISP is

• A)-42.
• B)-15.
• C)-1.5.
• D)-27.

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Definitions:

Variable Cost

A cost that varies with the level of output or production volume.

Volume of Activity

The level of production or sales volume at which a business operates during a specific period.

Identifying

The process of recognizing or establishing the identity of something or someone.

Cost of Goods Sold

Direct expenditures tied to the making of goods that a company markets, which include both labor and material costs.